Inflation is on the rise and we’re all feeling its repercussions. In such times, you may notice yourself going deeper into credit card debt. This is due to the rise in prices and variable credit card interest rates. If you’re not paying your debt in full every month, you’ll notice its increase and your credit score’s decrease.
Read on as we break down the link between inflation and credit card debt.
What is Inflation?
Inflation is the rise in prices of goods and services. This rise reduces the buying power of money over time. With such at hand, you may find yourself seeking how to get credit card debt relief. Freedom Debt Relief is just the company for this.
The average price increase of certain goods and services will often show the rate at which buying power is decreasing. Inflation can fall under one of three groups namely, demand-pull inflation, cost-push inflation, and built-in inflation. It can be negative or positive for different people depending on their situations. For example, those with assets such as property favor a certain level of inflation as this raises the value of their assets.
Effects of Inflation on Credit Card Debt
Inflation rate may increase credit card debt. As inflation and interest rates rise, so may credit card interest rates. This then sparks the increase in credit card debt and makes it that much more significant for credit card holders to pay their debt in full.
How can this be resolved? There are a couple of options available to decrease credit card interest rates. One of the best methods, however, is to contact your credit card issuer and inform them that this is what you wish to do. You do, however, have to be well-prepared to increase your chances of attaining this goal. Below are the steps to follow.
- Find out your APR (Annual Percentage Rate) – This means taking a look at a recent bank statement which will have an indication of your credit card interest rates and more.
- Make improvements on your credit score, you stand a better chance of achieving your goal with a higher credit score. This is because your creditor may make the decision based on this score.
- Know all the APR’s available to you, this prepares you better for any negotiations with your credit card issuer. There are ways available to compare your personalized credit card offers without causing any damage to your credit score.
- Get in contact with your credit card company. Their contact details can be found on your credit card. Mention what you’re hoping to achieve and if this is initially rejected highlight your customer history.
How to Get Credit Card Debt Relief
Firstly, to get credit card debt relief you will need to enlist the help of a reputable credit card company such as Freedom Debt Relief. Under such a company, you are given different options to pay off credit card debt, and the choice solely depends on your debt situation and preferences.
Some of these include:
- Getting a balance transfer credit card – This is card that allows you to transfer amounts from multiple credit cards on to one. The major advantage of this card is that it typically comes with no introductory APR for up to 21 months. This gives you enough time to pay off your debt comfortably.
- Getting a personal loan – The best loan option under personal loans is a consolidation loan. This loan combines all your credit card debt into one. This makes payment easier on you as you only have one monthly payment to deal with.
There is a link between inflation and credit card debt, one that must not be ignored. Be sure to keep an eye on inflation rates and make the necessary adjustments to have your credit card debt paid in full monthly.