Cost of carrying a credit card keeps getting higher - KOMO

The cost of carrying a credit card in your wallet keep getting higher. That's the overall conclusion of a new survey out today.The survey by Consumer Action, a California consumer group, looked at more than 80 cards from 20 banks, Including the 10 top credit card issuers.And here is some of what they found:Interest rates are up. The average interest rate for all the cards surveyed was 14.53 percent. That's up two percentage points from Consumer Action's 2005 survey.The average fixed rate card had a rate of 11.34 percent and the variable cards averaged 15.25 percent. It's clear that the higher prime rate is driving up credit card rates.The Consumer Action survey also found that penalty rates are up, especially the late fee. Make a late payment even one time, even by one day, and you can get hit with a large late fee -- and see your interest rate skyrocket.The average late fee is now $28, up from $13 back in 1995. But some banks charge a lot more. Consumer Action found late fees as high as $39 per incident.What about that penalty interest rate? The average is 24.51 percent. But with some credit card issuers, the penalty interest rate is 32.24 percent. And Consumer Action says there are lots of zero-percent interest balance transfer offers available now. These zero-percent deals can last from three to 12 months.Zero percent sounds like free money, but many banks now charge a transfer free to move your debt from another card to their card. That transfer fee can be as high as three percent. If you transfer a $10,000 balance you could pay as much as $300. So be sure to read the fine print before you take advantage of any zero balance transfer offer.The survey showed a continuing trend for card issuers to do away with annual fees. But many airline and high-end cards still have the fee, which the survey found are getting higher. If the bank wants to change something in your credit card agreement such as the interest rate or grace period, Federal law requires 15 days notice if the issuer is going to make a "material change" in the terms of the use. However, they are not required to give you any advance notice for the change is based on something you supposedly did wrong, such as paying late, going over your limit, or bouncing a check.