These days interest rates for the various types of credit such as credit cards, mortgages and auto loans are offered with largely different cost associated with them in the way of interest rate.
Credit card interest rate are currently significantlly higher than the interest rates of home loans with the average consumer credit card interest rate around 21% for individuals with fair credit according to research surveys. With all the economic stimulus and relief programs offered by the government to assist in these arduous economics time why are the creditor not passing along this relief to consumers struggling to make their monthly credit card payments? The reason is because unlike other types of debt credit card debt is not secured by any type of collateral so it is much more risky and therefore more expensive. But thats not the only thing that has led to very high interest rates on credit cards. The second cause of high interest rates is the 2009 credit card law designed to protect consumers by capping penalty fees has reduced creditor profits and in response creditors raised interest rates to recoup the lost income.
