Default Credit Card Interest Rates to Increase across US

The current economic crisis has led to serious steps towards fighting this difficult situation of credit crunch in the US economy. There have been many changes that have taken place in the financial sector to normalize the economic situation.

The news ‘Default Credit Card Interest Rates was Increase across US by Mid-May 2009’ has come as a big blow to most of the credit card holders. The new financial year 2010 has brought about significant changes towards the process of normalizing the tough economic conditions but this was perhaps the worst change that a credit cardholder could expect.

An increase in the default rate, at a stage when many have lost their jobs is going to be difficult for most of the cardholders. The only thing good about it is that the rates will not be applicable immediately. So these cardholders do have some time to at least formulate some plan towards managing outstanding balances.

What causes a default rate?

Late payments or exceeding the limit of the credit card can result in a penalty fee, consequently triggering the default rate.

Options available to the credit cardholders

• Pay off the maximum amount possible before the new interest rates come into effect

• Bargain with the credit card companies for time to pay off outstanding dues with low-interest promotional balance transfer offers

• Transfer the balance to some other existing card with a low rate

• "Opt out" of the increased rate in exchange for closing the account and to pay off the balance rate at the earlier rate of interest

In any case, the cardholder will have to plan promptly so that arrangements are made before the new interest rate come into effect.

Contact Collection Agency for more information.