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Increase in federal interest rate will impact credit card debts

When a Tennessee resident is struggling with overwhelming credit card debt, staying abreast of the actions of Washington politicians can seem like a waste of time. The immediate concerns of how a person will be able to pay their bills will weigh significantly more heavily upon them than the actions of individuals in the nation's capital.

However, it is often the case that those decisions from Washington, D.C., can have very real and very devastating consequences on people who cannot seem to get ahead of their credit card balances. For example, just recently the Federal Reserve announced that it will raise interest rates by one-quarter of a percent. While a quarter of a percent may not seem like a lot, it may have a big impact on debtors.

An increase in interest rates directly impacts the amount of money that credit card debtors must pay in order to meet their minimums on their credit card bills. The amount of money that a person carries from month to month on their bill is their balance, and to that balance the credit card company applies interest. As the federal rate climbs, so too do rates on consumer credit cards, and the changes can mean higher costs for people who have significant credit card debt.

Federal interest rates change often, but in the last few years rates have been steadily climbing. This means that individuals are facing bigger payments on credit cards that they cannot ever seem to pay off. Our readers who are caught in the cycle of chasing their credit card bills may wish to speak to debt relief and bankruptcy attorneys about how they may improve their financial situations as their interest rates prepare to go up.

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
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