If you’re carrying variable-interest debt on credit cards or other credit products, you’ve likely noticed an uptick in interest over the past few years. The Fed implemented a series of rate hikes throughout 2022 and 2023 to help fight inflation, which caused lenders to increase the rates on their credit products. For example, the average rate on U.S. credit card accounts went from 14.71% in 2020 to 21.47% by late 2023.
To give you an idea of how that translates, if you have $5,000 in credit card debt and a 14% APR, you’ll owe about $58 in interest charges per month compared to about $87 per month with a 21% A…
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