Credit card debt can be a major source of financial stress for many people, especially when high-interest rates make it difficult to pay down the balance. Fortunately, there are strategies you can use to cut your credit card interest rates and get your finances back on track. Learn five genius ways to do that FAST.
The current average rate on plastic is now over 20%. That’s like borrowing from the mob in a back alley.
And every time the Fed raises rates, so do the credit card companies.
Paying 20% is crazy. If you’ve got a $10,000 balance and pay the absolute minimum, depending on the card, it can take nearly 30 years to pay it off, and you could pay $16,000 in interest. That’s one and a half times more than you borrowed!
There’s got to be a better way.
Fortunately, there is. You have options, and if nothing else, you should at least check them out.
A zero-percent interest rate credit card is a great way to stop the interest clock from ticking, often for a year or more, while you focus on paying down your balances.
There are lots of 0% interest credit cards available, so compare the features and benefits of each to find the best fit for you.
Factors to consider include the length of the zero-percent period, the regular APR after the intro period ends, the balance transfer fee and the annual fee.
This is not a free pass to spend beyond your means. You still need to make at least the minimum payment every month and if possible, to pay off your balance before the intro period expires. And you’ll likely need a good credit score to qualify.
Still, 0% credit cards are powerful tools you can harness to crush high rates and radically reduce your balances. Just use them responsibly and plan ahead for when the intro period ends.
Another way to slash the interest you’re paying is to get a lower-interest personal loan and use the proceeds to pay off your high-interest plastic.
And finding one couldn’t be easier.
Whether you’re consolidating high-interest debt, financing your next home renovation project, or covering unexpected expenses, NerdWallet’s platform makes finding the right loan quick and easy.
It only takes a few minutes to apply — without affecting your credit score — and if approved, you’ll have money in your account in no time.
They’ve rated and reviewed loans from more than 35 financial institutions, with loan amounts ranging from $2,000 to $50,000 and APRs as low as 5.99%.
The marketplace also offers a range of helpful resources and tools, so you’ll feel confident and informed throughout the process. It’s never been this easy to find and compare personal loans.
Take advantage of much lower rates by borrowing against your home.
One of the most highly rated lenders is Quicken Loans. They’ve eliminated most of the hoops you used to have to jump through, so it only takes a couple of minutes to see what you qualify for.
Qualify for a rate of 6%, and you’ll be able to borrow $25,000 for a monthly payment of only $150.
Of course, if you’re having trouble making ends meet, be careful with this, or any type of loan. But if you’re gainfully employed, responsible and own a home, there’s no reason to pay ripoff rates. Take a couple of minutes to learn more.
You’ve spent years maintaining and building equity in your home. Now it’s time for your home to pay you back.
A reverse mortgage is a government-insured loan that lets homeowners 62 and older convert their home equity into cash, but without selling their home. Take the money however you’d like: monthly, lump sum, or line of credit. Use it however you’d like: home repairs, bills, traveling, or simply living a better life.
Your home remains yours. You hold the title until you die or choose to move elsewhere, provided you maintain the home. When you leave the house, the loan is repaid.
Reverse mortgages can make huge difference in your quality of life. But they’re not for everyone, so it’s important to get more information. Also important: Not all lenders are equal. Be careful who you deal with.
One lender that’s highly rated and happy to answer questions is Longbridge Financial. They’ve earned 4.8 of a possible 5 stars from Trustpilot, and Consumers Advocate says, “By far the best online experience and tools among all the reverse mortgage lenders we reviewed.”
If you’re 62 or over and have equity in your home, it’s time to at least need to see what your options are.
If you’ve got more debt than you’re able to comfortably repay, there’s no shame in getting some assistance.
National Debt Relief is one of the most respected providers of debt relief in the country. They’ve helped more than 500,000 people, are A+ rated by the Better Business Bureau and also top-rated by TopConsumerReviews, TopTenReviews, ConsumersAdvocate, and ConsumerAffairs.
How it works: You fill out a form on the company website, then a debt coach will call you to learn more about your situation. If they can help you, they’ll set you up with an affordable plan that works for you — and give you an estimate of when you can expect to be debt-free!
There’s also no upfront fee and no obligation to get started. National Debt Relief can help you with almost any unsecured debt, like credit cards, personal loans, medical bills, repossessions … even some student loan debt.
Don’t let credit card debt hold you back from achieving your financial goals. If you need to sell an annuity or structured settlement, contact us now for a FREE quote. We’ll strive to offer the best resolution for your situation as soon as possible. Call us to see how we may be able to help — 855.898.3278. Looking for more inspiration? Check out our Instagram for ideas and tips: @fastannuities.
Reference: [https://www.moneytalksnews.com/5-genius-ways-to-slice-your-credit-card-interest-in-half/]
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