Holiday shopping eyeing the end and credit card rates making a dip
People have been buying items with zest even in this tough financial condition because after all it’s Christmas and the New Year. But now it’s time that the holiday shopping is going to come to an end. There are many people how might have ended up at least some way into debt. So, these people may need to get the help of the credit counseling agencies in order to become free of the debts that they might have incurred while shopping for the holidays. But, take heed, there’s enough reason to rejoice yet again. Other than starting to chip off the debts that you might have incurred during the holiday shopping, another thing that you should know is that the rates of the credit cards have started to dip.
Credit card rates lowering
As the shopping season is just starting to near a close, the credit card companies have started to lower the interest rates on the new credit cards. It was seen that the interest rates have started to lower from last week. In fact, the interest rates were at record high during the holidays.
In general it was seen that the average annual percentage rate or the APR have dipped to 15.19 percent from the high of 15.22 percent of the previous week’s average. In fact, this drop is supposed to come after a week’s high if the interest rates for the full year can be considered. Rather, the high interest rates had sent the average rates to some unwanted and unbelievable heights.
The first decrease was prompted by Chase. They lowered the annual percentage rate or APR for especially the Slate Card to 13.99 percent. This is considered to be the second changes that have happened with regards to this card in many weeks. In the last to last week, Chase had changed the range of rate from 11.99 percent to 21.99 percent to a simple flat rate of 16.99 percent.
According to reports, 6 months ago, the national average APR was 14.83 percent. It increased to 15.22 percent last to last week and lowered to 15.19 percent last week. With regards to the low interest rate credit cards, it was 10.73 percent 6 months ago, 11.17 percent last to last week and it then lowered to 10.84 percent last week. Then, there are the interest rates of the business credit cards which were 13.07 percent six months ago. This changed to 13.13 percent last to last week and this interest has remained unchanged till now. There have been several such changes in the last few weeks with regards to the credit cards.
These changes came in just when Chase had tried to give a facelift to the APR for most of its consumers and the business credit cards. Balance transfer category too fell from what it was in the last to last week. It was a record high from 13.08 percent to that of 13 percent, which is considered to be the second-highest rate for the year 2011 in this category. These lowered interest rates are considered to be good news for the holiday shoppers.
Those who are still left with their shopping may find this really a good option. They may be able to use their credit cards more often than what they have been using recently. In fact, the National Retail Federation has published a survey mentioning that it is expecting that the holiday sales are going to rise by 3.8 percent this year itself. This rise is going to reach a record high of around $469.1 billion.
But, while going for the shopping, you will have to keep in mind that you should not end up using the credit cards so much so that you fall knee deep into debt even if the interest rates are low.
Author : D.J. Perkins is a financial writer and personal blogger. To learn more about credit counseling related updates, you can log in to www.creditmagic.org