STAFFORD, Texas, Oct. 24, 2022 (GLOBE NEWSWIRE) -- According to national nonprofit Money Management International (MMI), recent and upcoming Federal Reserve interest rate hikes could add as much as $4,500 in interest charges to consumers making minimum payments on their credit cards. This figure is based on the $18,150 average balance of those seeking credit card debt help from MMI.
The Federal Reserve is seeking to contain inflation by hiking interest rates, with two more rate hikes anticipated by the end of the year. These interest rate hikes will raise average credit card rates to nearly 20% APR by year’s end - a record high since Bankrate began tracking this data. There are also some indications that credit card delinquencies are beginning to rise.
“People are worried right now about rate hikes and paying back their debt, and understandably so,” said Jim Triggs, President and CEO of MMI. “The price of everything is going up, and it can be difficult in this environment to stay on top of your debts.”
MMI is one of the nation’s oldest and largest nonprofit credit counselors. Clients who enter into a debt management plan with MMI can substantially reduce their interest rates. MMI clients pay an average of just 6.41% APR* on included unsecured debts, a figure that can help shelter them from an inflationary environment.
MMI has a number of debt management clients across the country who have recently paid off up to six-figures worth of debt, boosting their credit scores by up to 250 points along the way. One of these clients - Marlon Iberra of Pico Rivera, CA - recently completed his debt management program, boosting his credit score by more than 200 points in the process.
“MMI really helped me get back on my feet,” said Ibarra. “Debt management was the best thing I could have ever done considering my financial struggles.”
Despite the benefits of nonprofit debt management, a recent Harris Poll commissioned by MMI found that nearly 3 out of 4 Americans were unaware of the interest rate reductions available to them.
“We simply want people to know all the options available to them to help save money, avoid harmful options or scams, and to find financial freedom,” added Triggs.
*aggregated average of MMI’s DMP client accounts in 2021
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. MMI Peer Advocates have paid off over $9 million of debt and now serve as community ambassadors. Hear from them at MMI’s podcast, Long Story $hort.
To schedule an interview with Jim Triggs and any of our MMI Peer Advocates including Marlon Iberra, please contact:
Attachment
