How Trump tariffs may affect debt repayment: survey
Studio4 | E+ | Getty Images
As President Donald Trump continues to negotiate the rate of tariffs that countries will finally pay to work with the US, the Americans already feel the higher price pinch – and many of them are worried about their payment capabilities.
Approximately 78% of the respondents say that Trump’s tariffs or taxes on imported goods will make it difficult to manage or repay the debt. in accordance with A resume template site to a recent report of Zety. The questionnaire destroyed 1,005 US employees on April 12th.
More than personal financing:
How does the GOP budget bill aim to finance immigrant
This trend increases as consumers support economic uncertainty
This financial milestone makes you an adult: survey
Trump’s trade policy included threatening higher tariffs and then changing his posture after a short time, and changing the negotiation tactic with other nations.
“Tariffs are clearly one of the favorite tools in the vehicle box,” Bankrate Senior Economy Analyst Mark Hamrick said. He said.
What tariffs mean for consumers’ debt
Tariff Policy of the Administration The prices of many daily goods are increasing. Accordingly A report in mid -June The budget laboratory at Yale University and tariffs can cost an average of $ 2,000 per household in 2025. The analysis is based on tariffs in force as of June 16th.
Tariffs also affected the interest rates paid by consumers over their debts. The Levis contributed to the uncertainty in the economy and left the Federal Reserve reluctant.
Federal Reserve President Jerome Powell said in a panel on Tuesday that the Central Bank would reduce rates this year, although the president’s tariff plan is not.
Since December, the FED has kept interest rates fixed by 4.25-4.5%.
In that case federal fund ratio It determines what banks charge each other for lending overnight, and at the same time directly affect the borrowing and saving rates for the Americans. In fact, the bank’s inertia has kept the credit card rates close to record levels.
According to LendingTree Chief Credit Analyst Matt Schulz, it is important to create a strong “financial basis” as uncertainty in the economy.
“Make yourself the best possible situation by creating your emergency savings and overthrowing this high -interest debt.” He said.
According to experts, three ways to address your debt despite economic winds.
1. Ask your lender to a better ratio
Experts, the first thing you want to do is communicate with your lending or credit card exporter and ask if they can reduce your annual percentage rate.
APR is usually the total borrowing cost of loan and any additional fee, per Consumer Financial Protection Office.
The average interest rate in credit cards is 24.33%. in accordance with For lending. However, the ratio offered by your exporter depends on factors such as your credit history.
If you have a “really good loan”, you can wait for 20.79% April to be offered; However, if your loan is not so stars, the rate you pay may be as high as 27.87%.
2. Apply for 0% balance transfer card
Schulz, “the best weapon you have in the fight against credit card debt” see 0% balance transfer credit card.
These offers, “a big difference,” he said, allowing you to move the current credit card debt to a new card and pay very little interest rates for a certain period of time.
However, Schulz, do your homework before applying and select the most suitable card for your situation.
However, Hamrick, Bankrate, says that such balance transfer options are usually allocated for those with good credit. Usually you need a credit score of 690 or higher to be qualified, and you can get a transfer fee in addition to other requirements. in accordance with To Nerdwallet.
3. Pay debt with a personal loan with low interest rates
Schulz may be a “really good choice” to pay a personal credit card debt with low -interest interest, because “you can reduce your interest rate,” said Schulz.
Borrowing costs for personal loans tend to be lower than interest rates in credit cards. However, the ratio you have obtained for a personal loan, including your credit history and servant, can determine many factors, per Nerdwallet.
For example, the average APR for two -year personal loans from a commercial bank was 11.66% in February. in accordance with To the Federal Reserve. Meanwhile, the average ratio on a three -year loan through a credit union was 10.75% in March. per National Credit Union Administration.
Schulz, remember that you have a new loan line and you have a new loan line and you think you are dependent on a static loan payment for a while.
