Many credit cards are beginning to raise their rates. Some have done so in the last few months before the changes go into effect next year. But if you have credit card debt you may be looking for ways to deal with rising rates and rising payments that come in conjunction with it.
You may have received notices about your rising rates with the option to opt out of the rate. When you do this they close the account, meaning that you will not be able to use the credit card in the future. This is a good choice if you want to stop using your cards completely, but it may affect your credit score because it will reduce the amount available credit you have left.
Another option is a debt consolidation loan. This allows you to lock in a lower rate and allows you to keep your credit cards open. The biggest drawback is that many people find themselves with credit card debt again in addition to the debt consolidation loan. If you are considering this option you need to stop using the credit cards and stick to a written budget.
Your last option is to get out of credit card debt as quickly as possible and stop using the credit cards. Then you wouldn't be paying the interest rate anyway. Credit card debt is the worst type of debt that you can accumulate. A debt elimination plan can help you turn the situation around and get you on the path to building wealth.
Hi Miriam,
Stumbled upon your site and feel like I hit a goldmine! I hate the anxiety that comes with money issues and want to make sure I always have peace-of-mind in that area. Luckily, living within my means was always a lesson my parents preached. I think I’m still trying to get the hang of it but realize the utter importance of reaching for happiness outside of material items. Anyways, long comment longer, I look forward to reading more of your posts and have subscribed to your newsletter to keep up on all you have to say. Thanks for sharing your wisdom – I look forward to learning and growing along with you!
xo,
lm