Credit card interest rates have reached record levels due to the Federal Reserve's war on inflation.
That could have a severe impact on consumers using them to buy gifts this holiday season.
Louise Smith, the Huntsville region leader for Wells Fargo, spoke with Ãå±±ÂÖ¼é on Thursday to share some much-needed tips for consumers before they hit the stores.
"These are turbulent times, if you will, but there is hope. There is a way to navigate and use those credit cards," said Smith.
The average credit card's annual percentage rate has climbed to 19.4% as of Nov. 9. It's the highest rate since 1985, when the services database began.
Smith advised consumers to only buy what you need and some of what you want.
"We don’t have to be really out here trying to purchase any and everything just because the sale is there," said Smith.
Around this time of year, Smith said, consumers should aggressively look for reward points.
"If they could spend their own reward points that they earned throughout the year on their everyday spending, that really helps to boost the economy without feeling the pain point or the pressure from inflation," she said.
However, if you are experiencing tough times as we approach the holiday season, Smith urges you to not feel obligated to break the bank and even offers an unconventional solution: Shop after the holiday.
"There are sales that would take place during the holiday season, but there are so many to take place after the holiday season," said Smith.
