Credit Card Rates Increasing at an Alarming Rate

Rumson, Bolling & Associates wants to shed some light on credit card news that may not be common knowledge. Credit card rates have increased for a two year high. the average interest rate on consumer credit cards soared to over 15 percent in September in the past two years.

Many believe this sharp hike has been because Congrass has passed the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (Credit CARD Act). Companies are raising their rates now because it will be much more difficult to raise rates after this Act goes into effect in early 2010. However, it is still likely with the current economical situation of the United States interest rates will continue to go up after the Act is in effect due to federal rates are predicted to go up. Currently individual companies are raising their rates, while in the future it would be an industry wide increase. An industry wide increase would mean not as big of an increase and a more regulated increase with the Act in effect. Current companies have much more free will to do as they please.

As the holiday season is approaching and everyone will be spending, Rumson, Bolling & Associates urges consumers to pay attention to interest rates, and your credit cards. For more information please read this article from ACA International.

http://www.acainternational.org/Credit-Card-Interest-Rates-Soar-15179.aspx