Interest Rates Up
On March 15th this year, the Fed hiked interest rates a quarter percent. Then a week later I get this email from Mint.com on all my credit cards that the interest rate went up by the 0.25%. The banks don't waste any time upping the rate, but that might not be so good for you if you are carrying a balance on credit card. This means that less money you pay towards the balance will go to the principal by the amount of rate increase above.
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| Email from Mint.com that Credit Interest Rate Went Up |
Perks Subsidized By Those with Balances
Although, I promote using credit cards for award travel benefits and the like, I am not indicating you should go into debt in order to do so. I preach responsible use of credit where it benefits you. I mentioned in previous post that I opened over 18+ credit cards in a year and I can honestly say, I don't recall paying a dime in interest. However, I did go to Hawaii by way of the perks the banks provide in order for you to be a loyal customer. The sad truth is that the banks are able to give away these perks because of people carrying balances and paying 16% interest. So, for those of us who aren't so good with credit, you are essentially subsidizing those who are.Force Me To Have to Pay for Travel
I would prefer that people were financially literate and weren't in all types of debt and there were not incentives like award travel paid for at the expense of others. That being said, I write this blog on several topics around personal finance matters and there are thousand, perhaps even millions, others speaking on personal finance, but are we/they being heard by the intended audience in debt, are those in debt taking action to correct there situation based upon that information disseminated? If the answer was yes, I probably wouldn't be able to travel for free because it would mean that people were getting out from under those hefty consumer debt balances and it wouldn't be profitable for the banks to give those type perks.The Trade
So, personally, I'll stop using award travel and/or perks given by banks, when using credit cards, when the information concerning personal finance that blogs like mine and others provide starts to resonate with an audience that is in debt and action is taken by said audience to get out of consumer debt and become fiscally responsible. So, if 5-10 years down the road, I am still writing about award travel by way of points/miles from banks, then you know said audience is content with the status quo. As I do feel that personal finance information available is sufficient to help the willing get out of and stay out of debt.In Closing
The Fed intends to continue to hike interest rates and as such I intend to get emails like the above from Mint.com saying interest rates have increased by x percent, but I'm oblivious because I never intend to pay that because I don't carry a high balance, if any at all; however, if your situation is different then mine perhaps you should take heed to a few of my blog post below and/or any other out there that suits your fancy. Just be sure to make up your mind to take action on the information because if you are willing, you are able. I will be glad to see my award travel post come to an end, it means the information we write here is starting to hit home, then you too can be oblivious to rate increases.
Personal Finance Solutions To Get Out of Debtor Mindset
Check out my Affiliate and Referral links here for products in services to help with investment, credit, cashback, and award travel. Also you can find more of my blog post on Start Here.
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