There’s a lot waiting ahead in 2017 including higher interest rates on your credit card balances.
Due to a decision made by the Federal Reserve, short-term interest rates will increase by 0.25%. This is actually very good news for many consumers. When interest rates increase, savings accounts will also see larger returns.
If you’re carrying a credit balance, start thinking of ways of paying it off faster because your credit card issuer will increase your variable interest rate soon. Note: This does not apply to fixed interest rate debts. If you find that paying off the balance right away too much, you could do a balance transfer.
These kinds of credit cards offer 0% intro APR’s on balance transfers. This period could last up anywhere between 12 and 22 months, depending on the issuer. You can take a current balance and put it on that credit card to avoid paying the higher interest rates that are coming.