Arizona Consumers should know that NOW is the Time to Pay off High Credit Card Debt

Here’s some bad news for Arizona consumers who carry high credit card balances: Your credit card debt is about to get more expensive. In Arizona and every other state, credit card interest rates are based on consumer credit scores and the prime interest rate which is set by the Federal Reserve. The prime interest rate has recently been bumped up by a quarter percentage point. This may not seem like much of an increase, but a lot of Arizonians will see a significant change on their monthly credit card statements. Also, another quarter point rate hike is expected before the end of 2017. This means that, if possible, you should be paying down high credit card balances. It’s also a good time to improve your credit score in order to qualify for a credit card with a lower interest rate. The Impact of Federal Reserve Interest Rate Hikes on Arizona Credit Card Debt According to USA Today, average credit card interest rates are around 15.07% (with assigned rates for subprime consumers being substantially higher). If an Arizona consumer carries a balance of $5,000 on a card with a 15.7% APR, a quarter point prime rate hike will add about $175 in interest charges for the year. By the time 2019 rolls around, all of the planned prime rate hikes could take an additional $525 annually onto this Arizonians credit card debt. ValuePenguin.com has published statistics showing that the average amount of credit card debt per household in Arizona was $5,673 in 2016. This means that a lot of consumers in the Grand Canyon State are likely to feel the...