Credit Card Rate Increases Coming

The Cost Of Credit Card Debt Is Going Up

Several credit card issuers have just announced that they will raise interest rates and increase some other charges on their credit card holders. American Express and Citigroup have announced they will raise the annual credit card interest rate by 2 to 3 percentage points on 1 December 2008.

American Express and JP Morgan Chase also plan to increase rates on cash advances and for card holders who are carrying large balances from month to month.

Even credit card holders who have faithfully paid on time but have carried a balance from month to month will be subject to higher interest rates and higher fees.

JP Morgan Chase will charge a $10 monthly fee starting in January, 2009 and will rase the minimum payment from 2% to 5%.

Further, for credit card holders who pay off their balances each month,  credit card issuers are looking for ways to increase the charges for these consumers.

Carefully read any communications from you credit card issuer. Make sure you understand any changes they are planning. You may need to shop around, however, this is likely to be a general trend and therefore, the options may be limited.

Read Check your credit card rate; some increases can be stopped. As the financial institutions are being squeezed and their profits decline, they are looking to squeeze their customers in an effort to improve the bottom line.

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