Recently, I have been reading alot of financial articles about people compiling credit card debt and it makes me wonder what are some ways people can avoid paying such high interest rates. Credit cards are notable for having some of the high interest rates for any lending product. I'll call it revolving lending for the sake of this conversation. Two things came to mind. One is your typical balance transfer. The 2nd option is a personal loan.
Credit card companies offer balance transfer promotions quite often. You typically pay a 3% fee on the transfer amount but then you get anywhere from 12 to 18 months of 0% APR. That leads to huge savings granted that you pay the new card off within the promotional timeframe. The second option is a personal loan. This rate will be impacted by your credit score so the higher your score, the more favorable the rate. Paying 5% annual on a balance is much better than 24% APR. Get creative when thinking of financial solutions that fit your needs! If you have any questions about this, shoot us an email at email@example.com.