If your credit card debt is feeling like a vicious cycle of keeping up with fees, you may feel like there is no way out. In order to change your situation for the better, you need to take action to understand how your credit card default rates are being calculated.
Credit cards can be a great financial tool if you are able to stick to the terms. However, if you do not pay off your debt in good time, you can be subject to hefty fees that seem unfair. Many people get trapped because they owe penalty fees for several cards, making it impossible for them to afford to pay off the original debt.
What is a credit card default rate?
A credit card default rate refers to the maximum percentage payment you will owe if you are late on your credit card repayments. Typically, the credit card default rate comes into effect when you are late on your repayment by more than 60 days. The standard credit card default rate is 29.99 percent, but this can differ between banks; therefore, it is important that you know what your rate is.
How can I avoid being subject to the credit card default rate?
If you want to avoid such high-interest rates, you need to make repaying your credit card on time a priority. If you have automatic payments set up, you should always make sure there is enough money in your current account to pay back your credit card.
If you are struggling to get out of credit card debt in Washington, an attorney can provide you with good financial strategies, as well as information on bankruptcy.