Holy cats! My credit card interest rates!

I decided to take my own advice that I’ve been dishing out about credit cards and debts. Today I reviewed my credit card accounts to see what my current interest rates are. I’m pretty lucky to have great credit and that I’m able to pay off my debts monthly.

The interest rates on my credit cards *currently* range from 12.74 to 19.65%!!! I was honestly very surprised, which is why I’m sharing my cat, Rocko’s “shocked” face. If my credit scores were lower, or if my balances were higher or if I was late on a payment, my interest rates would be even higher!

When the Fed meets later this month, it’s expected the Fed Funds rate will be increased again anywhere from 0.75 to 1.00%. That means that my credit card interest rates could go up to 13.74 to 20.65%.

I say I’m lucky to have great credit scores and to be able to pay off my debts… but it hasn’t always been that way for me. I once had a significant amount of credit card debt when I was younger and a single mom. I know what it’s like to over utilize credit and the challenge of getting it better managed. It’s no fun.

I really encourage everyone to take the time to review your credit card statements and make note of the current interest rates. If you’re carrying balances be prepared for the interest rates to continue to move higher during the year after the FOMC meetings. Interest rates on credit cards are based on the prime rate which follows the Fed funds rate.

The remainder FOMC meetings where we may see interest rates based on prime rise are scheduled for July 26-27, September 20-21, November 1-2 and December 13-14. By the end of the year, I expect my credit card interest rates to be a couple points higher.

At Mortgage Master Service Corporation, we have a couple options available that can help homeowners with equity. We have both fixed rate second mortgages and home equity lines of credit. The fixed rate second mortgages (HELoans) are not based on prime so the interest rate will not change. The other potential benefit with a second mortgage is the opportunity to significantly reduce your monthly debt payments. The monthly savings can be used to build an emergency savings account or to make additional principal payments to the second mortgage.

I’m happy to review your personal scenario to see how we can help you – no refi required!