Household credit card debt had its largest quarterly increase in at least 22 years, according to new data released by the New York Federal Reserve>How to deal with rising credit card debt costs
The average credit card currently charges about 16% in interest, but that could easily rise to over 17% by the end of the year, Rossman says. For consumers that owe a balance on their credit card, that will likely mean paying more in interest each month than they already are.
If that's you and your budget is already stretched to its limit, you might want to explore your other debt relief options before interest rates rise.
"My top tip is to sign up for a 0% balance transfer card — these offers last as long as 21 months," says Rossman. "Other good tactics include consolidating higher-cost debts into a low-rate personal loan, seeking nonprofit credit counseling and looking for ways to earn more and spend less."
