WEST PALM BEACH, Fla. — There seems to be no end in sight to how high credit card interest rates can go.
Macy's is raising the bar, notifying customers their rate has increased to 34.49%.
"[Credit card interest rates are] ridiculous, 30%, 29.9%," said Lena Rodriguez outside the Macy's in Palm Beach Gardens. "It's unaffordable."
Rodriguez said she tore up most of her credit cards.
Currently, Bankrate lists the average credit card interest rate at 20.7%, but retail cards typically run higher rates than traditional credit cards.
Money
Credit card expert advises pay down debt, be aware of rates
Managing big balances with high rates is not easy, and WPTV looked to a expert at NerdWallet for help.
"Step one: know what you're being charged in the first place," Sara Rathner at Nerd Wallet said.
If you're not happy with the rate, she said there are a few things you can do:
- Call the card's customer service and ask for a lower rate — sometimes it works
- Make a balance transfer to a zero-rate card, usually for a limited time period
- Pay more than the monthly minimum to work down debt faster
- Be disciplined with credit cards; no impulse spending
"If you are feeling that anxiety when it comes to your money, when it comes to your credit cards and possibly even debt, use that channel, that anxiety to the greater good," Rathner said. "Use that motivation to start taking action. Even small ones today, that can pay off for you in the future."