Fed interest rate hike will make credit card debt more expensive

In a bid to control inflation, the Federal Reserve on Wednesday increased its benchmark interest rate by three-quarters of a percent, the highest increase in nearly three decades.

The Fed's benchmark rate is the basis for most credit card interest rates. Your variable rate is rising if you have one.

Consumers are using their credit cards more frequently just to get by as inflation climbs.

Consumer credit card debt increased by almost 20% in April.

Also increasing year over year are credit card debt. In the first three months of 2022, they totaled $841 billion, and experts anticipate that they will continue to rise.

Consolidate your debt with a loan that offers a reduced interest rate, or bargain with your credit card provider.

There are numerous websites that you may access online to compare credit card offers side by side.

Your credit score may suffer if you switch credit cards. However, you can save a lot of money if you pay down your debt soon.