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Tuesday, 6 February 2007
Credit Card Bloated?
With Christmas an ever fading memory and the first pay check of the month now in the bank, do you still have a Christmas hang-over or the January sales blues?
If your finances are in trouble, have you given them any attention yet?
If you have spent too much money on your credit cards here are two options to deal with it.
Lets start with the higher effort, shorter term option as most people want to get rid of their debt as quickly as possible.
First you could compare credit cards and find a new one with a 0% balance transfer for an introductory period.
This allows you to take the money you owe on existing credit cards with high interest rates and move them to a new credit card charging no interest for an introductory period of typically 6, 9 or 12 months. Instead of spending your money on interest each month, you can use it to reduce the amount of money you owe. At the end of the new credit card's introductory period, repeat the process all over again to minimise the interest paid and maximise your repayment power.
A low effort but longer term option is to take all of the debt on your credit cards and move them to a loan with a lower interest rate. Again this allows you to spend more money on paying back your debt each month and less on interest. This option takes less effort as once the debt is converted to a loan all you have to do is make the payments each month until the debt is repaid but does take longer as you are paying some interest. Make sure you compare loans to get lowest typical APR and therefore the least intersest to pay.
Obviously to maximise the effects of either of these options you need to stop spending!
Also if your finances are in serious trouble, please seek the help of a financial advisor.
If your finances are in trouble, have you given them any attention yet?
If you have spent too much money on your credit cards here are two options to deal with it.
Lets start with the higher effort, shorter term option as most people want to get rid of their debt as quickly as possible.
First you could compare credit cards and find a new one with a 0% balance transfer for an introductory period.
This allows you to take the money you owe on existing credit cards with high interest rates and move them to a new credit card charging no interest for an introductory period of typically 6, 9 or 12 months. Instead of spending your money on interest each month, you can use it to reduce the amount of money you owe. At the end of the new credit card's introductory period, repeat the process all over again to minimise the interest paid and maximise your repayment power.
A low effort but longer term option is to take all of the debt on your credit cards and move them to a loan with a lower interest rate. Again this allows you to spend more money on paying back your debt each month and less on interest. This option takes less effort as once the debt is converted to a loan all you have to do is make the payments each month until the debt is repaid but does take longer as you are paying some interest. Make sure you compare loans to get lowest typical APR and therefore the least intersest to pay.
Obviously to maximise the effects of either of these options you need to stop spending!
Also if your finances are in serious trouble, please seek the help of a financial advisor.
Labels: credit card, loan
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