'The sooner you can face the numbers and devise a plan to pay it down, the easier you'll breathe,' one financial planner said.
to hopefully restabilize the U.S. economy. In short, the Fed changes the federal funds rate, which alters the prime rate — that's the rate banks charge customers with high credit ratings. Credit card issuers add onto the prime rate to set their interest rates, so when the prime rate goes up, so does what you'll pay when you're in debt.
Technically, that means it's not so much a rate hike as it is a gentle uphill slope. But $800 was already a lot, and that's without accounting for the fact that you'll still need to spend additional money you might not be able to pay back. The bills don't stop just because you're in debt. "The hardest part is ripping off the Band-Aid and really just adding up the numbers to see how much you owe," said Akeiva Ellis, a certified financial planner and founder of The Bemused, a financial literacy brand for young adults."But if you're able to make it to that point, it's really all about making a plan. Don't let your debt overwhelm you. The sooner you can face the numbers and devise a plan to pay it down, the easier you'll breathe.
REVISIT YOUR BUDGET: The more money you can apply toward your monthly credit card payment, the sooner you can get out of debt. But that's easier said than done in a time of higher prices."The interest rate hike doesn't live in a vacuum," McClary said."Other things continue to happen that increase financial pressures on every American.
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