Economists said now is the most convenient time for consumers to put in place a plan to pay off credit card debt as quickly as possible, because it will become more expensive as the key interest rate increases by 0.75 percentage points since last Wednesday. They described credit card debt as the worst debt to sustain in current times, amid high inflation, a falling stock market and high interest rates.
Experts have unanimously agreed that consumers should take seven steps to reduce credit card debt: the first is to stop using credit cards if their balances are not paid each month, and the second is to start paying the card with the smallest balance. While the third step is to try to get from the bank a zero-sum card, i.e. an interest rate (zero percent) for a limited period, and the fourth is to negotiate with the credit card issuer to check their credit report and credit score, and see if they qualify for affordable terms or even a rate An introductory credit card without interest.
Experts called for consolidating debt or personal loans as a fifth step, especially if they can reduce the interest rate so that a smaller amount can be paid as a monthly payment, noting that the sixth step is to communicate with a credit advisor to negotiate with the issuer of your card, to prepare a debt management plan, explaining that the step Seventh is to consider declaring bankruptcy as a last resort, as this step helps seniors mired in credit card debt as bankruptcy as a step they can take in the United States can give them a fresh start.
"High rates, high inflation and large stocks are a difficult combination," said Ted Rosman, senior industry analyst at Bankrate.com, as saying. "We could soon be looking at ever-higher levels of interest rates and credit card balances," he said. The average annual percentage rate for new credit card interest in the US is between 18.04% and 25.14%.