Repaying credit card debt can be costly and time consuming because many credit cards charge very high-interest rates. In fact, according to the most recent data from the Federal Reserve, average credit card interest rates were at 15.09% while the average rate on cards assessed interest was even higher at 16.61%. According to Pro Publica, if your credit score is under 660, your interest rate may be as high as 27%.
Have you been paying the minimum amount due on your credit card month after month? If so, the balance you owe the credit card company continues to grow as you continue to spend. When you’re paying only the minimum due, it can feel like you’re barely making progress toward paying it down.