Credit card interest rates hit record highs | New

Credit card interest rates have reached record highs due to the Federal Reserve’s war on inflation.

This could have serious repercussions for consumers who use them to buy gifts this holiday season.

Louise Smith, Huntsville area manager for Wells Fargo, gets some much-needed advice for consumers this holiday season.

“These are turbulent times if you will. But there is hope. There is a way to navigate and use these credit cards,” Smith said.

The average annual percentage rate for credit cards climbed to 19.4% as of November 9. This is the highest rate since 1985 when the service database began.

Smith advises consumers to only buy what you need and some of what you want.

“We don’t have to be really here trying to buy just because the sell is there,” Smith said.

At this time of year, Smith says consumers should aggressively pursue rewards points.

“If they could spend their own rewards points that they’ve earned throughout the year on day-to-day expenses, that really helps stimulate the economy without feeling the pain point or the pressure of inflation,” she said.

However, if you’re having a hard time as the holiday season approaches, Smith urges you not to feel like you have to go broke and even offers an unconventional solution.

Maybe shopping even after the holidays. There are sales that would happen during the holiday season, but there are so many after the holiday season,” Smith said.

Leslie M. Gill