Consumers should prepare for potential fee hikes
With deflation still evident in the economy, credit card interest rates could shoot up, according to some economist, Smart Money reports.
During a time when prices for everything seem to be falling, credit card companies have to find a way to make up for depreciating assets, says Smart Money. One way to do that is through raising fees and interest rates.
Considering the trend of increased fees, it’s not unreasonable to think that consumers may find themselves paying more for their credit card purchases, says Smart Money. Consumers with credit card debt can take steps to help combat imminent prices increases.
Smart Money says that if an issuer tries to impose an interest hike, consumers should try to decline it. If that doesn’t work, sometimes transfering the balance to a new card with a lower interst rate makes the most sense.
Sometimes a debt management program is the best and easiest solution for getting a grip on credit card debt. Counseling programs can help consumers create a feasible payment plan.
The Federal Trade Commission notes that many colleges, military bases and credit unions offer resources for people to turn to when in need of debt management services.