Credit Card Interest Rates’ Slow Climb
| April 20, 2010 |
While many people have probably come to expect an increase in credit card interest rates with a change in the prime rate, many are finding that these rates have slowly been increasing without it. While it has not been very noticeable to many, experts and researchers believe this will change as the "time of historically low interest rates" are now at an end.
According to an article entitled "Credit Card Interest Rates to Trend Higher", interest rates of credit cards have been slowly increasing and are expected to continue. In fact, it is stated that the average credit card interest rate reached just above 14% in February, up from 12% of two years ago. In addition to that many experts believe that it will drastically rise by the end of this year, possibly pushing the average to above 16%. In any case, the two percent increase that has occurred already has already added about $200 more that the cardholder must pay in interest each year.
When it comes to why interest rates have risen over the past couple of months many have placed the blame on things such as our nation’s burgeoning debt, weakening economy, renewed fears of inflation as well as many other things. Whatever the case interest rates which Americans have enjoyed for the past several decades seems to be coming to an end, leaving millions of people no other choice than to have to pay more for many financial products and services.
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