Pay off high interest debt
Date: Fri, 08/19/2005 - 21:10
through the roof. My minimum does not cover the
interest. Can companies keep charging such high
interest rates
Hi Kel It will be a wise move if you can destroy all the cred
Hi Kel
It will be a wise move if you can destroy all the credit card accounts with the balances and put an end to all your future borrowings. You can close your account after it reaches the balances of "$0" or you can transfer the balance to other credit card balances at lower interest rate. This will help you in reducing the existing high interest rate credit card debt without initiating credit inquiries or acquiring additional credit cards. You can call your existing creditors and negotiate for a lower rate.
A recent study was conducted where it was analyzed that the average interest rate charged on credit cards is approximately 14% and the highest is 41%. In the United States, every household with one credit card owed $2,985 in 1990 on an average and it rose to $8,562, in the year 2001.
The average credit card holder has 6.5 credit cards while the average number of cards per household is 14.3.
Regards
Roxette
