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6 times your credit card interest rate could rise
Credit card interest rates have been on a swift upward trajectory over the past few years, with card rates climbing from an average of 16.28% in 2020 to today’s record-high rate of 22.76% — an increase of nearly 40% in just four years. This uptick in rates has caused significant financial strain for many cardholders, as any unpaid balances can quickly accrue significant amounts of interest. If that happens, it can be challenging to make meaningful progress in paying down your debts.
There are clear signs of the impact that today’s high-interest-rate environment is having on cardholders. For example, there has been a troubling rise in maxed-out credit cards and payment delinquencies recently, which suggests that many cardholders are struggling to keep up with their financial obligations. The total amount of credit card debt has also been increasing nationwide, indicating that cardholders are becoming more reliant on this short-term borrowing option.
And while it’s likely that the wider rate environment will shift soon due to easing inflationary pressures, there’s still a distinct possibility that your credit card issuer could increase your credit card interest rate this fall. Understanding when and why your card issuer can increase your rate is crucial for protecting your financial future. Below, we’ll break down what you should know now.
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6 times your card issuer can raise your credit card interest rate
If your credit card interest rate has increased recently, or if you notice an uptick in your rate in the coming months, here’s why it may have happened:
Your card issuer raised its rates
Credit card companies will periodically review and adjust their interest rates based on various economic factors and internal policies — and while the wider rate environment can play a role in these decisions, it’s not the only factor. So, while the upcoming Fed rate cut (which is expected in September) will likely have a positive impact on mortgage and personal loans, card issuers are under no obligation to follow suit.
If you’ve held your card for at least a year, your issuer’s future rate decisions could lead to an increase in your credit card interest rate. They are required to provide you with 45 days’ notice before implementing these types of changes, though, so it’s important to stay vigilant and carefully review any communications from your card company.
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You made a late payment on your account
Late credit card payments can have severe consequences, including triggering penalty annual percentage rates (APRs). These rates are significantly higher than your standard APR and can be applied to your account if you fail to make a payment within 60 days of the due date. That’s why it’s important to set up automatic payments or reminders to ensure you never miss a payment. Otherwise, your card APR could be increased temporarily if you’re more than 60 days late on a payment — and you’ll need to make three consecutive on-time payments to get rid of that penalty APR.
An introductory rate offer is ending
Many credit cards offer attractive introductory rates, such as 0% APR on purchases or balance transfers for a limited time. If you’ve been enjoying the benefits of this type of promotion, be aware that its expiration could result in a substantial rate increase. It may help to mark your calendar for when these promotional periods end and plan accordingly to minimize the impact on your finances.
There was a drop in your credit score
Your credit score plays a crucial role in determining your credit card interest rate. If your credit score has decreased recently due to factors like increased credit utilization, missed payments on other accounts or even minor issues like hard inquiries, your card issuer may respond by raising your credit card interest rate. Regularly monitoring your credit score and addressing any issues promptly can help you maintain more favorable rates.
You didn’t comply with the terms of your card agreement
Credit card agreements contain specific terms and conditions that cardholders must adhere to. Violating these terms, such as exceeding your credit limit or using the card for prohibited transactions, can give the issuer grounds to increase your interest rate. So, you should always read and understand your card’s terms to avoid inadvertently triggering a rate hike.
A fixed-rate period expired
Credit cards generally have variable rates, but some credit cards offer fixed rates for a certain period. If your card has such a feature and that period is ending, you may see your rate increase to a variable APR that fluctuates with market conditions.
The bottom line
Your credit card interest rates can be impacted by the wider rate environment, but it’s important to understand that those aren’t the only factors driving your card rates. If you want to avoid unpleasant surprises, it’s important to stay vigilant and proactive in managing your credit card accounts. That way, you can better position yourself to navigate the challenges of a potentially rising interest rate environment and avoid the pitfalls of paying more interest on your credit card charges.
CBS News
1 monkey recovered safely, 42 others still remain on the run from South Carolina lab
One of 43 monkeys bred for medical research that escaped a compound in South Carolina has been recovered unharmed, officials said Saturday.
Many of the others are still located a few yards from the property, jumping back and forth over the facility’s fence, police said in a statement.
The Rhesus macaques made a break for it Wednesday after an employee at the Alpha Genesis facility in Yemassee didn’t fully lock a door as she fed and checked on them, officials said.
The monkeys on Friday were exploring the outer fence of the Alpha Genesis compound and were cooing at the monkeys inside. The primates continued to interact with their companions inside the facility on Saturday, which is a positive sign, the police statement said.
Alpha Genesis CEO Greg Westergaard relayed that efforts to recover all the animals will persist throughout the weekend and for as long as it takes, the statement said.
Westergaard told CBS News on Thursday that a caretaker inadvertently failed to secure a door at the enclosure, allowing the monkeys to roam free.
“It’s really like follow-the-leader. You see one go and the others go,” he said. “It was a group of 50 and 7 stayed behind and 43 bolted out the door.”
Westergaard acknowledged that it would be a long process to get them back and that they didn’t want to chase the monkeys because that would spook them and make them run away.
“We’ve got them very close,” he told CBS News. “This is all like what we want to see.”
The monkeys are about the size of a cat. They are all females weighing about 7 pounds.
Alpha Genesis, federal health officials and police all said the monkeys pose no risk to public health. The facility breeds the monkeys to sell to medical and other researchers.
Alpha Genesis provides primates for research worldwide at its compound in Yemassee, about 50 miles (80 kilometers) northeast of Savannah, Georgia, according to its website.
CBS News
American nurse killed in Budapest while on vacation, Hungarian police arrest suspect
A 31-year-old American tourist was killed while on vacation in Hungary’s capital, and the suspect, a 37-year-old Irish man, has been arrested, Hungarian police said Saturday.
The victim, Mackenzie Michalski was reported missing on Nov. 5 after she was last seen at a nightclub in central Budapest.
A Facebook group called “Find Mackenzie Michalski,” created on November 7, said Michalski, went by “Kenzie.” The group confirmed her death in a statement on Friday, thanking U.S. and Hungarian authorities for “their prompt attention, diligence, care, and consideration.”
Police launched a missing person investigation and reviewed security footage from local nightclubs where they observed Michalski with a man later identified as the suspect in several of the clubs the night of her disappearance.
Police detained the man, an Irish citizen, on the evening of Nov. 7. Investigators said that Michalski and the suspect met at a nightclub and danced before leaving for the man’s rented apartment. The man killed Michalski while they were engaged in an “intimate encounter,” police said.
The suspect, whom police identified by the initials L.T.M., later confessed to the killing but said it had been an accident. Police said that he had attempted to cover up his crime by cleaning the apartment and hiding Michalski’s body in a wardrobe before purchasing a suitcase and placing her body inside.
He then rented a car and drove to Lake Balaton, around 90 miles southwest of Budapest, where he disposed of the body in a wooden area outside the town of Szigliget.
Video released by police showed the suspect guiding authorities to the location where he had left the body. Police said the suspect had made internet searches before being apprehended on how to dispose of a body, police procedures in missing person cases, whether pigs really eat dead bodies and the presence of wild boars in the Lake Balaton area.
He also made an internet search inquiring about the competence of Budapest police.
Michalski’s parents are currently in Budapest, police told The Associated Press.
Friends posted condolences on the Facebook group of candles. Michalski was a nurse practitioner, the social media post said, who used “her humor, positivity, and limitless empathy to help heal her patients and encourage family and friends alike.”
CBS News
Severe droughts threaten sustainable catch of the Amazon’s giant fish, the giant pirarucu
Two years of record-breaking drought have dealt a heavy blow to what is arguably the Amazon’s most successful sustainable economy: the managed fishery for the giant pirarucu.
In Brazil´s Amazonas state, almost 6,000 riverine dwellers authorized to fish have reported a sharp drop in production and rising costs. They are demanding aid from the federal government and debating how to adapt to climate change.
Last year’s catch totaled 70% of the government-authorized quota of 100,443 fish. This year could see an even steeper decline, since many communities still haven´t been able to fish. The season runs from June 1 to Nov. 30.
Pirarucu managed fishing began in the Amazon 25 years ago in the Mamiraua region and has since expanded. It helped the Amazon’s largest fish escape risk of extinction and is now an important source of income for locals in 10 sustainable conservation units and eight Indigenous territories, where deforestation is close to zero.
Unlike other aquatic species of the Amazon, such as river dolphins, the pirarucu — also known as arapaima — historically have proven resilient to drought and climate change. But low water levels are making it extremely difficult for fishers to transport their catch from remote lakes to major rivers and onto cities.
It’s a mammoth task. The pirarucu, which can weigh up to 200 kilograms (440 pounds), lives in large lakes that during flood season are often connected to major rivers. Fishing typically occurs when water levels begin to recede, making it easier to trap the fish and transport them out in small boats or canoes. In several areas, however, water levels dropped so quickly that this connection was cut off before fishing could begin.
In the São Raimundo community in the Medio Jurua region, fishing is scheduled to start Saturday, a two-month delay — a common situation this season. As a result, Coletivo Pirarucu, an umbrella organization that represents 2,500 riverine and Indigenous families, has requested that the federal government extend fishing season until the end of January.
Even in large rivers navigation has become problematic, raising costs and uncertainty among fishermen. It usually takes three to four days to transport fish from Carauari municipality — a major pirarucu producer — to Manaus, the Amazon´s largest city. During the peak of the drought, the trip increased to 10 days, and the freight price has doubled.
Tough as pirarucu are, they are not immune to climate change, according to researcher Adalberto Luis Val from the National Institute for Amazonian Research. He says rising temperatures and severe droughts are exacerbating the “death trio” for all fish: warmer water, more CO2 and less oxygen.
The pirarucu has evolved to breathe air but is far from invincible.
“No fish can regulate body temperature,” Val said. “Then there’s water scarcity. As its level drops, you start to get a high amount of suspended material, leading to sludge buildup. It sticks to the gill area, blocking the processes that occur there.”
Fearing deteriorating conditions in the following decades, Coletivo Pirarucu contends that the fishermen should be entitled to compensation for losses caused by climate change. “This crisis not only challenges the resilience of communities but also highlights the urgent need for climate change adaptation and mitigation strategies,” the nonprofit stated in an open letter last week.
In an e-mail response, James Bessa, a federal official overseeing pirarucu management, said that Ibama, Brazil´s environmental agency, is working with other public bodies and local fishing associations to reduce the impact of extreme events like droughts and floods. He said there are plans to start scientific studies and closer monitoring to provide insights into ways to support riverine and Indigenous communities in sustaining their fishing activities.
Adevaldo Dias — a riverine leader who presides over the Chico Mendes Memorial, a nonprofit that assists traditional non-Indigenous communities — argues that adopting additional public policies to help the fishermen is a matter of climate justice.
“The Indigenous and riverine peoples have minimal impact on the environment,” Dias said. “We know that conserving the forest benefits both us and those outside it. And when extreme climate events occur, they are the most vulnerable.”