Was your credit card one of the millions that were switched from having a fixed rate to one that is variable? With all of the changes that credit card issuers made in the months prior to the implementation of the second round of regulation of the CARD Act, there is one that about to affect millions of cardholders that may be just starting to understand their credit card. That change involves the change from a fixed rate to a variable one and how the variable rate is calculated.

According to an article entitled “The Ticking Credit Card Interest Time Bomb”, cardholders need to be prepared for the near future when rates on credit cards attached with a variable interest rate rise. While there is not an exact time period on when rates will increase, the fact that they will is certain. Over the past couple of months we have already seen an increase in credit card rates even as interest rates were at an all time low. For this reason one can only imagine what highs will be hit once the Federal Reserve decides to raise it officially.

As cardholders must start now to ensure that the raising of interest rates don’t catch them by surprise, many are finding that credit cards may not be the best way to make purchases. Now more than ever we are finding that cardholders have decided to pay off more than just the minimum balance and use other forms of payments such as cash and debit cards. While for some they don’t seem as convenient or give you the rewards you receive by using a credit card, they do give something that for many is a whole lot better. A peace of mind knowing that they don’t have to worry about paying more money than what is stated on the product’s or service’s price tag.

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