As conditions in the economy improve, many individuals in Oregon and elsewhere may find it much less difficult to access new lines of credit. While this could seem like a positive change, those who receive offers for a credit card might want to proceed with caution. Credit cards may already have higher interest rates than other lines of credit, which may only continue to rise in accordance with the increases to the economy and stock market.
Interest rates on credit card accounts are tied to the federal funds rate. The study suggests that the Federal Reserve might increase interests rates by the end of the year, and could potentially do so up to three or four times in the following year. This would reportedly lead to subsequent rises in rates on credit cards, which could cause those who carry constant balances to experience further monetary hardships.
This may also be a major concern for those who carry balances on store-branded credit accounts. Although many stores may offer incentives for applying for credit, these cards also carry higher interest rates to offset any rewards obtained. Individuals who carry a revolving balance may wish to resolve their financial issues before the situation grows out of hand, but they might need guidance in the process.
As balances grow and interest rates continue to rise, individuals who suffer due to substantial amounts of credit card debt may find themselves in need of relief. When facing similar monetary challenges, one could speak with a bankruptcy attorney for advice on each available option, as well as their potential outcomes. An attorney in Oregon can address a client’s financial situation and provide advice on choosing the correct path with which to pursue financial freedom.
Source: consumeraffairs.com, “Credit card interest rates poised to go higher“, Mark Huffman, Oct. 20, 2017