Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

Beware: 2015 Prime Time for Credit Card Rates to Rise

November 10, 2014 at 7:01 PM

Beware: 2015 Prime Time for Credit Card Rates to Rise

You know how much I hate credit card debt, given the astronomical interest rates you are stuck paying. Though the average is around 14% I know plenty of you pay more than 20% interest. And next year could be even more expensive for anyone carrying credit card debt.

As you better know by now the interest you are charged on an unpaid credit card balance is tied to any movement in whatever benchmark index or rate the card issuer uses. Many credit cards use the Prime Rate as their benchmark. Since early 2009 the Prime Rate has been stuck at 3.25%.

That’s all about to change.

What you need to understand is that the Prime Rate is itself tied to the Federal Funds rate. That’s the interest rate controlled by the Federal Reserve, and if you’ve been following things lately the expectation is that for the first time since the financial crisis the Federal Reserve will raise the Federal Funds rate in 2015. Not a lot, but it will go up.

My friends, when that happens the Prime Rate will rise too, and that will trigger increases in the interest charged on credit card balances.

Beware: 2015 Prime Time for Credit Card Rates to Rise

As part of its work checking on the health of our big banks post crisis, the Federal Reserve issues a periodic stress test of bank financial health. As part of that stress test the Fed has to make some interest rate and economic assumptions about what may happen in the future. In its most recent “baseline” scenario —that is, if things go as expected with no big shocks to the system-the Fed expects the Prime rate to rise to 4% by the end of 2015 and estimates it could reach 5.4% by the end of 2016. That guarantees the interest rate on your credit card debt is heading higher.

The time is always right to take control of your credit card debt. Now it is urgent as anyone with credit card debt in 2015 is likely to see their borrowing costs go up. Time to stand in your truth and get cracking on this important financial goal. My free Debt Eliminator will show you exactly what to do.

Tag Cloud

Moneypay 100% cashpeace of mindsave moneyWashingtonteach importance of helping othersLong Term Care premiumscompare provider pricinglong term carehighest possible benefitreal estate mistakesPersonal FinancePBS SpecialRetirement SavingsFederal Funds Ratepaid in fullretirement accountsspeak new goalGoodbyebetter loan ratesWarner Bros Television GroupPrime Rate Rise 2015mortgageterm life insuranceFHA loan feesincentives for health care wellness screeningovercome financial fearsUrbana-ChampaignLTCgift grandchild IRA contributionHigh FICO Score = Better Ratedon't charge a pennyconsider roth 401(k)don't derail retirement savingsschool back-to-school budgetopen enrollment review AccuQuote.combuy home you can afford4 Must Have Documents emergency fund savingssocial security not going brokerequired disclosurepremiumreduce withholdingalways use all paid time offfour steps to retirement savings repay student loansbe good exampleCOLAone annual feeGiftsbreakdown projected monthly housing costhigher monthly payment!00% tuition paidlong term goalincreased auto insurance premiumAuto Savings college studentprotect dependent maintain standard of livinglower rateETF'sfinancial concerncredit utilization rateUniversity of Illinoiscollege graduatelower interest ratepaid vacationYoung Adult be true to yourselfno late fee file taxes quicklyallowancesetup automatic savings withdrawSelfishat worst still pay 75% benefitmax employee matchwomen outlive menARM Cautionmanage student loansfraudulent returneight month living expense face your financial fearBill and Pennydo not pay allowance for good behaviorstudent loan repayment estimatortitle insurancemarriage inequalityonly offered while employed Jose Rodriguezborrowing plan women live longeris it kind?Vital Documentsget over life insurance phobiaincrease retirement contribution ratecar leasingraise deductibleshigh down paymentpermanent life insurancetelevision hostbalance transfer teach your child good money habitswould you decline a bonusGracedental savings plansocial securitySave Us Moneymortgage disclosureNew York Lifegrandchild summer job IRA contributionlowest cost fund optionspecial saving accountdangerous money seasonkeep a schedulespring summer How To Build Credit15 year mortgageCivil Rightsholiday spendingretirement planLong Term Care Insurance store credit cardsbig results Retirement IncomeSuze Orman15-year refinance dealFICO Scorestrained relationshipnear historic lowsAARPplan3% debt transferred no life insurance financially irresponsibleidentity theftFree Debt Eliminatorshorter payback periodcomparison shoppingBaby Boomerscharges on credit cardlong-term care term insuranceMothermake saving a pleasureARMraise insurance deductibleloan necessitydon't spend buying car 2016non conventional routevalentines dayLegal Guardiandepreciating asset preexisting condition not coveredbuy homenew carswitch to roth 401(k)high FICO scoreFinancial Awareness Video FestivalMost Influential Celebrities Listhealthy aging Telepicturesapproved medical 100% tax-freedream schooloverspend on giftsloan no longer than 36monthsautomatic paymentprotect loved ones 19 years cash flow problemmoney vowsstandard deduction pay more than minimumWall StreetSatisfyinginsurance yearly reviewmeet monthly mobile appMarlo ThomasdebtFixed Rate MortgageExhibitionsuccessFinancial Clifftax ID theftemployer offered life insurancefederal student loan deferment Giftincrease emergency savingssidelinedcostly insurance mistakePrime Rate Increaseallowance task20% down payment40% toward financial goalsocial security never insolventknow before you oweadjust allocations replace permanent life insurance with termno private loanfinancing car marriage financial responsibilityescrowEasy Life Insurance pay interest while in schoolcommitget the most out of social security Federal Stafford loanfamily save at least $100 monthlyAshley SpringerFinancial Systemmax benefit coveredhealthy youfile asapcredit cardsavingsdear suzeshop online guaranteed level term policydental discount planMortgage Credit Availability IndexFRAUniversity of FloridaBankThe Suze Orman Showbest interest ratesbill paying prioritiesloan is giftgift not loanunexpected expense50 over 50value moneyfinancial independencelow-cost index mutual fundFiscal ResponsibilityCiti Simplicity Card bad retirement planningchildren under 18dangerous retirement plan3 bucket approachanticipated salaryreduce monthly paymentStudent DebtHDHP rolloverLifestyleSchool of Social Workno interestchildren's bookno private loansdon't use allowance as bribeheartacheSuze is my biggest mentor8 month safety netSuze Orman Scholarshipno retirement funds for down payment6 month waiting periodfocus on needsraise your deductibleyours, mine & oursChanging Livesautomate student loan paymentslow credit scoredon't do five year car loanis it necessaryCommencementco-sign Beautyuniversal college accessFICO credit score credit card mortgageAlarm Clock20% down payment avoid feespush yourself to save more for retirement20 year level term origination feeslower mortgage interestreal estate marketreferrals Financial Solutions For YouRevocable Living Trustno tax on withdrawlsdental insurance small changes become member overspend on dining outpay down car loanmortgage interest tax deductionleave a legacyHDHP'sdon't defer interest paymentscreate new truth2015 financial roadmapjuggle multiple financial goalsinterest capitalizationfull retirement ageMoney-SavingCory BookerSuze approvedhigh credit score discountrequire chore in exchange for allowancedoctors in networkwrite new goalAdequate Auto and Home Insurance3 step financial road mapAARP Social security calculatordon't extend mortgage IRA contribution gifted moneydo you need life insurancehigh premiumsage appropriate choremonthly benefit Veterinary Schooltax refund fraudgift up to 14,000Forbespay high rate off firstfinancial goal phraseno fee transferstaycationno negativitySuze Orman's Money Warsprescription tierwaive home inspection bidresponsibleunder 18 financial giftEric Dodge stay positiveemployer funding HSAfinancial fearsmental healthFICO at least 720interest on student loanspay off debtcar buying mistakes20% equityGay Rights8 Rules10% donate to charitycalculate dependents annual income needslearn good financial choices8 month emergency fundhome buying budgetultimate compounding giftMinor Children taxesquick closingbuy down lower premiumidentity fraudincrease retirement savingsPost-Divorceproperty taxteens and moneydon't cover cosmetic dentistrySandy Hook Promisetraditional vs roth 401(k)cut monthly cable billhealthy retirement weightpoint cost offset by savingsdon't blow tax refundcan you afford itno apologyForeclosurebetter termsHoliday Seasonbudgetpercentage men widowed 75-84retirment savingsFinancial Gift Cliffcommunity collegeHDHP/HSAcompare monthly expensesclosing costs 2% of loanshort term goal women longer life spanInterestnegotiate points with bank or sellernot gender specific community bankderailed planresponsible with moneyNewtownCPI-Wburn outalternative FICO scoreSandy Hook Elementary Schoolprotect your familypublic service career student loan repayment emergency fund Financial Advice30 year mortgage couple financescontribute household expenses Final GoodbyeEmergency Savingspaying for college401(k) ContributionsInvest for savings growthDurable Power of Attorney for Health Care20 to 25 times annual incomedeath benefit 20 to 25 times annual incomeverify wellness screening and programsno waiting period740 credit scoreStock Investmentsbest loan deal adult childrenis it true? provider of financial supportstretch out haircut appointmentsLovezero rate transfer dealshome buying mistakesConventional loan PMIreduce interest ratecredit managementavoid burn outhome loan credit score below 740 LTC shoppingget health insuranceno sneaking in feesinsurancelive below your meansHigh Credit ScoreNew american Dream purely financial standpointgay marriage ban end Florida Student Debt Crisiscostly legal pay credit debt ASAPrefinancecredit reportworkaholicstudentHolidayCredit Card Interest Rate401KGay Couplesclosing feesletter to suzelower overall drug costiffy incomepresident ObamaFinancial Awarenesspercentage of women widowed 75-84be kind to yourselfroth iradeath benefit needs for familyautomatic withdraw to savings student loan repaymentHDHP's are not badhome related tax break bonus FinancialHeartfinancial argumentsaffordabilityinsurance mistakeSelectQuote.comcredit unionhousing marketsummer job match income LTCi ASAPphysical healthhealthy retirement blood pressurehome ownershipinitial tax break Pay Off Debt Before Retirementsavings pleasureaffordable premiumloved ones dependent on incomewives should be involved in retirementsocial worklife insuranceInfluential Celebrityadvice for college graduatesAmy Lacyetannual cost of living adjustmentswitch to spouse coverageis it necessary?retain separate credit cardsdoctor no longer in networkkids schedule paymentsFinancial Educatorprotect and provide for minor child home insurancelow mileage discountthree year car loanWilldebt freepublic service loan forgiveness programtoo expensive schoolloan big picture graduationHDHP's are good for youCredit Card Rate Increaselong-term care premiumsrent vs buysame-sex marriagelife insurance name trust as beneficiaryBankruptcyFederal PLUS loancontribution Fundshome budget after tax costnot enough life insurancepay down student loan debtverify retirement plan with HR or plan sponsorSpendingrising home pricesUS Tax Codemonthly dental insurance premiumborrow each year, capitalization is going to pile up Credit scoreteenscut monthly cellular billearn allowance10 year repayment plan CNBCemotional stakeskid borrow firstdon't ignore open enrollmentlousy investmentRevocable Trustsame sex marriage band end Floridastandard ratehigher insurance deductiblemortgage brokerworst financial mistakeSuze Orman spouse Kathy Travisritual schedulecar loanmultiple lendersstudent loan debtmax employer matched 401(k) contributionschedule vacationEmployer Matched Contributionhome buying seasonlow down paymentget credit cardHSA tax savingshigh deductible health care planage appropriate goalsStudent Loanexercise reguarlySuze changed my lifeMoney Marketsave One Wallet At A Timebad decisionsenjoy saving grandparent IRA contribution positiverefundForbes Top 10women long term carecost of capitalization calculatortake actionadd teenLong Term Care shoppingCollege of Veterinary MedicinePhyllis Shelton expert long-term careoverspend on nights outone credit cardclosing disclosurefocus on new truth TeachpowerfulMust Have Documentssecured cardcnbc alarm clock3 savings buckets 2015 record year car salesmoney-aware childbuying a cardon't buy wants2017 Taxesignore 6 month grace period 2016 adjust estimated taxAmericans don't use all paid vacation timestudent loan repayment planconfident of solutionsecure creditunsubsidized Stafford loanbetter loan deals2016 adjust withholdingitemized deductionHoliday ShoppingFinancial Power of AttorneyMass Mutualonly refinance if it paysconfidentOverspendingno splurge retirementjanuary billsRoth 401(k)back door Roth IRACommunication Skills debit cardfinancial aidRichlet them have 50% controlInfluentialsStaffords this year have a fixed 6.8% interest rate


View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel