What to do with your credit card debt now that the Fed raised rates again | CNN Business

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Each time the Fed raises rates, the lending rates that banks charge their customers tend to follow. That means consumer debt — especially variable-rate credit card debt — will get more expensive.

The Federal Reserve on Wednesday raised its key interest rate for the 10th time since mid-March of last year. Each time the Fed raises the rate, the lending rates that banks charge their customers tend to follow. That means consumer debt — especially variable-rate credit card debt — will get more expensive. “The average credit card rate is now at a record high above 20%,” said Greg McBride, chief financial analyst for Bankrate.com. More specifically, it was at 20.23% as of April 26.

“Turbocharge your debt repayment efforts with a 0% balance transfer offer, some lasting as long as 21 months,” said McBride. “This insulates you from further rate hikes and gives you a runway to get the debt paid off once and for all.” But first find out what, if any, fees you will have to pay , and what the penalties will be for late or missed payments during the zero-rate period.

 

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