Credit card expert advises to pay off debt, be aware of rates

WEST PALM BEACH, Florida. As interest rates rise with every new move by the Federal Reserve in an attempt to control inflation, many consumers may not be aware of the cost.

“It’s one of those things you don’t think about, but you need to think about,” said Ted Rossman of Bankrate.com.

A recent study by Bankrate.com found that 43% of people with debt don’t know their interest rate.

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Currently, the average interest rate on a credit card hovers around 20%.

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“TransUnion says the average credit card balance is $5,805,” Rossman said. “If you make minimum payments of 19.95%, you will be in debt for over 17 years and pay over $8,200 in interest,” Rossman said.

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To reduce debt, Rossman advises first trying to stop charging and then finding a plan to pay off the debt.

The best way, he says, is to look for zero-interest stocks for balance transfers, which can give consumers up to a year to pay back what they owe.

“Obviously we want you to pay what you can, if possible, pay everything,” Rossman said. “But if you have to carry debt for a while, put the interest rate first.”