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Costs for credit cards.
Interest rates on new credit -- card offers hitting 15%.
This week and that is the highest in four years.
Doesn't include teaser or introductory rates.
And it's the first time since credit cards dot com started tracking -- national average citi's big change it or rising rates the new norm.
And what He needed -- John Alzheimer is the president consumers.
-- -- credit dot com.
Obviously the numbers are going up here is this normal is this recovery mode everything else seems to be coming down when you talk about interest rates.
Well DOS it mean -- news just continues to get -- when it comes to plastic that the net.
Yeah that's about 15% interest rate is about as high as it's been.
For about a decade -- average interest rate on -- credit cards the resent that the industry is claiming that they have to charge.
Such a high average interest -- to introductory or new clients.
Is because it's harder for them -- to adjust interest rates once they'd been set initially so for example what I call you all right what is it what does that mean John I mean it's not like I -- I notice.
It's weak it's it's pretty weak but this is their excuse they're planning I mean they're blaming everything on legislation so why not blame this on legislation acquiring -- they don't Abbott.
The same amount of nimble and -- and to adjust rates.
As the rest of the car -- -- and so they just starts out with a higher rate.
Are a OK but we've got some really good solutions here for people and that's what I'm excited about.
Before we get to your card picks -- you have some low interest rate card picks which I think are great.
I wanna show folks what it means to you when the interest rate and credit card -- -- -- have a 9% interest rate on your credit card.
I have an 8000 dollar balance it's gonna -- -- 218 months to pay off that debt.
Dollars in interest alone.
At 18% look at the change 111615.
Dollars in interest payments.
John to people necessarily understand that it isn't that exactly what you wanna consider.
Yet gets a very good point now they don't understand that and that's the what what are the -- that a card act is now it has to be overtly disclosed on your statement.
How much you're gonna pay in interest by paying off your credit card at the minimum payment each month and how long it's gonna take to pay it off and you be surprised a lot of consumers are actually gonna pay off.
-- upside down mortgages before they pay off.
Their credit card bills and they're just stock by paying -- minimum balance this is something a lot of people think it's an already.
Error when they get these disclosures -- of -- to sell hard to believe it's gonna take decades to pay off your credit cards.
I'm when it read quickly your picks for credit cards.
IBERIABANK Visa classic civil point 25% that's a long way from fifteen chase freedom nine point nine night and of course a credit union credit card.
Much better Jon thanks for hanging out with its did a great job.
Great information will be were.
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