A recent poll has shown that only 39 percent of people who have a balance on their credit balance know what their interest rate is. This means that 59 million people in America know how much interest that they are paying.
Ed Mierzwinski is the senior director of the United States Public Interest Research Group. He stated that if you do not know how much interest you are paying, then you are probably paying more than you have to. The average Annual Percentage Rate is 16.1 percent. Most households pay $1,000 in interest per year.
Experts recommend that you get out of debt as soon as possible. Mark Cuban is a billionaire. He stated that paying off your debt is one of the best investments that you can make. If you do not currently have the funds that you need to pay off your debt, then you will need to make sure that you know how much interest you are paying.
Ed recommends that you look at your statement every month. Credit card companies know that most people do not look at their statement, and they take advantage of it. Not only do you need to be aware of how much interest you are paying, but it is also important to remember that interest rates can change. Many companies raise the interest rate every year.