STAFFORD, Texas, Dec. 12, 2022 (GLOBE NEWSWIRE) -- Money Management International (MMI) is urging consumers to pay more than the monthly minimum payments on credit card bills because the Federal Reserve could again increase rates at their final meeting of the year.
When the Fed meets in December, analysts say they could raise the short-term borrowing rate another .5 percentage point, on top of four straight .75 percentage point hikes.
Credit card interest rates are already at their highest point since Bankrate began recording data in 1985. This is tough news for anyone carrying high credit card debt, underscoring the importance of organizations like MMI.
According to MMI, the rate hikes in 2022 can add $4500 in total interest for cardholders making only their minimum payments. This calculation is based on the average balance of just over $18,000 for those reaching out to MMI for debt help.
Horace Simmonds of Brooklyn, New York knows the feeling all too well. He recently paid off $44,000 in debt over a 5-year period with the help of an MMI debt management plan.
“I had strongly considered bankruptcy but then thought otherwise because of concerns over my credit coupled with my strong sense of responsibility,” said Simmonds. “My advice is to make a realistic plan and stick to it, knowing it won’t be easy.”
Simmonds worked two jobs in education and had several setbacks due to family health issues. But he persevered.
“My experience was challenging, but a good one. I was able to pay off $44,000 worth of debt that would have amounted to tens of thousands more with the interest that would have been added over the years. It’s a great feeling and I’m proud of my accomplishment,” Simmonds added.
“If you carry a credit card balance, less of your payment goes towards the principal every time the Fed increases the rate,” added MMI’s Jim Triggs. “We’re able to help consumers work with creditors to reduce and fix the interest rates on their credit card debts and get them on a payment plan so they can pay down their debt faster. It’s an incredible feeling to see our clients find financial peace for the first time in years.”
Last year, MMI helped over 52,000 households repay nearly $242MM in debt.
About MMI
Money Management International (MMI) is changing how America overcomes financial challenges. MMI helps create, restore, and maintain a life of financial wellness through empowered choices. For over 60 years, our clients have achieved financial confidence through nonprofit programs that educate, motivate, and liberate. MMI inspires action by delivering expert professional guidance and timely solutions aligned with our client's goals. Experiencing a financial challenge? Find your solution 24/7 at 866.864.8995 and MoneyManagement.org.
For reporters looking to interview “real people” for stories, MMI has created a group of nearly 200 clients from across the country who are willing to share their experiences with the media, in the hopes of helping others challenged with debt. Our peer advocates have paid off over $9 million of debt and now serve as MMI ambassadors. Hear from them on MMI’s podcast, Long Story $hort.
To schedule an interview with Jim Triggs and any of our MMI Peer Advocates, including Horace Simmonds, please contact:
Thomas Nitzsche, 404.490.2227, Thomas.Nitzsche@MoneyManagement.org
Lori Geary, 404.551.2151, lgeary@lexiconstrategies.com
