5 Ways You Can Pay Off Your High-Interest Credit Debt Sep 22nd
Credit card debt is among the most costly ones. Its interest rates range from 20% and 30% in some cases. Cardholders might have even higher penalties rates in case they fail to make a payment on time.
How You Can Pay Off Your High–Interest Credit Debt
Paying off your loan as soon as possible must be a priority for you. Below you can find 5 ways to pay off your high-interest credit card debt.
- Credit Card Balance Transfer
When having a balance on a high-interest credit card, it is possible to save money by transferring it to a card with a lower interest rate. Some cards even offer 0% APR (annual percentage rate) promotional financing on balance transfers for 6 – 21 months. The majority of cards require balance transfer fee of 3% – 5% of the amount transferred. Be aware there are cards offering balance transfers with no fee.
- Personal Loan
If you have good or excellent credit, you can apply for a personal loan offered by many banks and credit unions. If the interest rate the loan requires is lower than your credit card balance, you can use this loan to pay off your credit cards and also cut your interest costs.
To get the best for your business, consider turning to a reliable high risk processor like First American Merchant. FAM offers a low-cost and secure high risk merchant account to help you grow your business.
- 401K Loan
A 401K loan account enables you to pay yourself back over as long as 5 years. The interest rates offered will be extremely competitive – lower than almost all other credit cards. You act as your own lender and no excellent credit will be required from you.
- Life Insurance Loan
You can apply for some types of whole, universal, or variable universal life insurance policies (you can visit this site to learn more). These will enable you to take out a loan against them. The amount withdrawn will then be deducted from your death benefit. Any unpaid interest will be added to your loan amount and subject to compounding. This type of loan implies borrowing from your own funds, so your current credit score must not necessarily be excellent.
- Home Equity Line of Credit
Current interest rates offered for home equity lines of credit are below 5%. The ability to secure a home equity line of credit depends on your home’s debt to credit ratio plus your current credit history.
As for secured loans (e.g. car loans and home mortgages), these can have lower rates. Given a student loan or a home mortgage, your interest can be tax deductible, but in the case of credit card debt, it is not. Take your time to study all the available loan options and choose what is best for you.
Sep 22nd
Credit card debt is among the most costly ones. Its interest rates range from 20% and 30% in some cases. Cardholders might have even higher penalties rates in case they fail to make a payment on time.
How You Can Pay Off Your High–Interest Credit Debt
Paying off your loan as soon as possible must be a priority for you. Below you can find 5 ways to pay off your high-interest credit card debt.
- Credit Card Balance Transfer
When having a balance on a high-interest credit card, it is possible to save money by transferring it to a card with a lower interest rate. Some cards even offer 0% APR (annual percentage rate) promotional financing on balance transfers for 6 – 21 months. The majority of cards require balance transfer fee of 3% – 5% of the amount transferred. Be aware there are cards offering balance transfers with no fee.
- Personal Loan
If you have good or excellent credit, you can apply for a personal loan offered by many banks and credit unions. If the interest rate the loan requires is lower than your credit card balance, you can use this loan to pay off your credit cards and also cut your interest costs.
To get the best for your business, consider turning to a reliable high risk processor like First American Merchant. FAM offers a low-cost and secure high risk merchant account to help you grow your business.
- 401K Loan
A 401K loan account enables you to pay yourself back over as long as 5 years. The interest rates offered will be extremely competitive – lower than almost all other credit cards. You act as your own lender and no excellent credit will be required from you.
- Life Insurance Loan
You can apply for some types of whole, universal, or variable universal life insurance policies (you can visit this site to learn more). These will enable you to take out a loan against them. The amount withdrawn will then be deducted from your death benefit. Any unpaid interest will be added to your loan amount and subject to compounding. This type of loan implies borrowing from your own funds, so your current credit score must not necessarily be excellent.
- Home Equity Line of Credit
Current interest rates offered for home equity lines of credit are below 5%. The ability to secure a home equity line of credit depends on your home’s debt to credit ratio plus your current credit history.
As for secured loans (e.g. car loans and home mortgages), these can have lower rates. Given a student loan or a home mortgage, your interest can be tax deductible, but in the case of credit card debt, it is not. Take your time to study all the available loan options and choose what is best for you.
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