RALEIGH, N.C. (WTVD) -- Credit card interest rates are jumping to historic highs. With things costing more, you may have a harder time paying off your monthly credit card balance in full.
If you're not paying off your monthly credit card debt, you will be facing some of the highest credit card interest rates in thirty years, that's according to the latest Credit Card Landscape report by WalletHub.
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That report found that the average interest rate for new credit card offers is 22%, up from 18% the previous quarter. The report found that interest on business credit cards is even higher at 24%. Jill Gonzalez with WalletHub says, "You really want to be strategic about your pay down so there is something called the avalanche effect that can be helpful here. It's a real strategy to help minimize the cost of your debt."
She explains how if you have several credit cards with different interest rates, pay down or even off the one with the highest rate, even if it's not the one with the most expensive balance. "so pay the minimum on the other two cards, and put any extra you have just toward that third credit card that way. You can strategically pay off your debt once that one is paid off, do the same to the next highest interest rate," Gonzalez.
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Gonzalez says another tip to try and avoid the high-interest rates, "Take advantage of a good balanced transfer deal. Those are the deals that you might see that say, you know 0%, for up to 18 months, when you transfer a balance. Just keep in mind the time frame of that 0% deal, as after the introductory offer is up, the interest rate typically skyrockets."
One last tip is to call your credit card company and try and negotiate a lower interest rate. Start with the one you've had the longest and good paying history. Explain that you're loyal and want to stay with them, but need a lower rate, or you will shop around.