The high rate of interest makes settling credit card debt with a cheap secured personal loan an attractive proposition. Money owed on a charge card is referred to as revolving debt because there is no defined term to the credit agreement. This means that the debt could last indefinitely.
The Importance of Settling Credit Card Debt
- The median rate of interest on new purchases was between 6% and 22.75%.
- The average APR on new purchases was 13.54%.
- Fixed-rate credit cards attract a median rate of interest of 11.82%.
*The above statistics are from a Consumer Action survey of 41 credit card providers.
