WEST PALM BEACH, Fla. — As interest rates rise with every new move by the Federal Reserve in an effort to try and control inflation, many consumers may be unaware of what it's costing them.
"It’s one of those things you don't think about but need to think about," Ted Rossman of Bankrate.com said.
A recent study by Bankrate.com revealed that 43% of people carrying credit debt don't know their interest rate.
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Currently, the average credit card interest rate is hovering around 20%.
"TransUnion says the average credit card balance is $5,805," Rossman said. "If you make minimum payments at 19.95 percent, you'll be in debt for more than 17 years and pay more than $8,200 in interest," Rossman said.
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To bring down debt, Rossman advises first to try and stop charging and then find a plan to pay down the debt.
The best way he said is to seek out 0% promotions for balance transfers, which can give consumers as much as a year to pay down what they owe.
"Clearly, we want you to pay as much as you can, pay it all if possible," Rossman said. "But if you need to carry debt for a time, put your interest rate first."