While the use of credit cards in Tennessee can be seen as beneficial, it is important for users to understand how interest rates and other fees associated with those unsecured lines of credit can affect them. Personal credit scores and reports can play a significant role in what rates credit card companies may see fit to charge a person. Obviously, a person with excellent credit will not be paying as much in interest fees as someone with only fair credit, but these rates can still contribute considerably to credit card debt.
Luckily, there are ways to potentially battle interest rates. One step could be to contact a company and request a lower interest rate. A person with good credit and who is not someone who habitually makes late payments may be able to request and gain a lower interest rate. Many companies also offer deals on interest rates to new customers that individuals may wish to learn more about.
Another step to combatting rates is to maintain a proper payment schedule and paying off balances. Only making the minimum payment may seem convenient at the time, but farther along, those minimum payments can lead to significant amounts owed due to the accumulation of interest. A person’s debt situation could see vast improvement by taking measures to end interest build up.
Credit card debt is a serious issue that plagues many Tennessee residents, and taking these simple steps may not always be enough. If a person’s credit is in less than stellar, they may wish to find out information about more rigorous debt management options. Bankruptcy can be a viable option to those individuals who qualify, and those seeking relief from their debt burden may find this option a responsible choice for addressing the problem in a responsible manner.
Source: CBS News, “Many credit card users paying through the nose“, Aimee Picchi, April 21, 2014