Sure, you know what a credit card is and how to use it. However, some consumers don’t know that the credit card industry changes regularly. Just like any other industry, there are things about credit cards that change all the time. While the cards still work the same, you can leverage these changes to save money.
Interest is Going Up
Interest rates are going up. The Federal Reserve keeps raising its federal funds rate, which means that interest rates across the lending industry are going up too. This can mean big changes for credit card users who carry a large balance. Protect yourself by creating a personalized budget or by getting some extra help.
Credit cards make it incredibly easy to shop online. According to Statista, the amount that consumers are spending online is growing. Most of this goes on credit cards because the only other way to pay is usually by debit and many like to utilize their rewards programs. If you limit your online shopping, you’ll limit your credit usage as well.
Putting Large Expenses on the Card
In an effort to get the most out of their credit cards, more people are using them to pay for large expenses, like tuition and medical bills. While this maximizes rewards, it also means you pay high interest rates if you can’t pay off the whole bill at once. Instead, save until you have enough to make the purchase or choose a payment plan.
Credit cards are very useful and come with a lot of perks but allowing debt to accumulate with interest rates rising is a dangerous mix. If you are carrying heavy credit card debt and are looking for a solution that works, call Americor and see why so many Americans chose our program.
By Sarah Winfrey