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Federal Reserve Raises Interest Rates!

Mega Contributor

Federal Reserve Raises Interest Rates!

Credit cards


Most credit cards these days have a variable rate, which means there's a direct connection to the Fed's benchmark rate. The quarter-percentage-point rate hike means you'll pay an extra $25 a year for every $1,000 of debt, according to NerdWallet.

The Fed's increase is expected to raise the amount the average household pays in credit card interest to $1,309 from $1,292 a year, NerdWallet said (assuming the average credit card APR of 18.76 percent).


While a $17 increase doesn't seem like an emergency situation ,"these rates are expected to continue to rise, and each change adds up and increases your debt burden," said Sean McQuay, Nerdwallet's credit card associate. However, there's still time to consider a zero interest balance transfer offer and make aggressive steps toward paying down your high-interest debt once and for all.

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