Despite historically low interest rates, consumer credit card rates have remained at uncontrollably high rates. Although borrowing rates for America’s largest banks and credit card issuers have held steady at record lows for the past five years, consumer borrowers have seen no relief in the form of reduced interest rates or monthly payments. This means that:
Even the smallest amounts of credit card debt are nearly impossible to reduce as high monthly payments still don’t produce principal reduction.
With credit card rates routinely reaching into the mid 20% rate range and higher, the low cost of borrowing has, not surprisingly, not been passed on to the American credit card customer. Instead, low interest rates have merely meant greater profits for American banks heavily invested in issuing high interest credit card debt.
Monthly minimum payments remain high with no end in sight.
Credit card debt creates untenable debt-to-income ratios that continue to threaten family budgets throughout the country. It’s the most difficult, insidious form of debt to carry.
Learn more about how to correct and resolve your Debt-to-Income ratio. In Connecticut, call us at 203-230-2233 and tell us the specifics of your financial concerns. We have been resolving financial problems for Connecticut residents since 1983. If you are in need of a bankruptcy lawyer, consider someone from a firm like the Law Offices of Neil Crane to help you resolve your credit card debt.