Credit Card Interest Rates

Even with the recent slashing of rates by the fed, many credit card companies are increasing or at least maintaining the rates they charge clients on a monthly basis. This astounded me becuase the reason the fed cuts the rate is to encourage lower rates for the consumer by lenders. Due to the market conditions apperently and an increased attention to client credit ratings, lenders are not lowering rates as they normally do. Here is a great article on the issue from Monday:

http://www.washingtonpost.com/wp-dyn/content/article/2008/02/10/AR2008021002537.html

Credit cards are one of the monthly bills that here at PPS we pay first before most other things, in order to make sure clients are not getting hit with higher interest or late fees. We have also found ourselves more and more offering clients monthly reports on the status of their cards, focusing on APR, minimum payments, outstanding balance and general terms and conditions. Many of our clients simply do not have the time to review this data.

This is an area of your daily finances that requires close attention and management, news like this only reinforces that.

Devin