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. They won’t all work for everyone, but at least click a few links and see if any of these solutions will work for you.
1. Instead of 20%, try paying zero
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.
Click Here for the 10 Best 0% Credit Cards
2. Turn lenders against each other
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.
Try out the NerdWallet loan marketplace right now. You’ll be glad you did!
3. Borrow from yourself
The average credit card interest rate these days is approaching 25% — a record high. Sounds like what a loan shark would charge, doesn’t it?
Never borrow recklessly, but when it’s time, do it right. Take advantage of much lower rates by borrowing against your home. Use that loan — with rates as low as 6.75% — to fix up your house, to pay off high-interest debt or for any other purpose (besides financing a lifestyle you can’t afford).
That’s a fraction of what credit cards charge, and will literally save you thousands of dollars over the life of the loan.
How do you shop for the best deal? Simple: Head to a loan shopping site like Rocket Mortgage. They’ve eliminated most of the hoops you had to jump through in the past, so it only takes a couple of minutes to see how much you could get.
4. Cash In Your Home Chip
If you purchased a home in the last 10 years, you likely have significant home equity: Equity you could harness to improve your home, pay down high-interest debt, or a million other things.
The problem? Traditional home equity loans require a long approval process, interest, and monthly payments.
That’s where Unlock Technologies comes in. Their home equity agreement (HEA) allows you to tap your equity without the hassles of a traditional home equity loan.
You can see how much equity you can unlock in about two minutes. No credit score impact. No strings attached.
Unlock could offer you cash in exchange for a portion of your homes total value. Because a HEA isn’t a loan there are no monthly payments or interest charges. The Unlock HEA has a 10 year term, and has flexible repayment conditions.
Unlock currently operates in these 14 states: Arizona, California, Colorado, Florida, Michigan, Minnesota, , New Jersey, North Carolina, Oregon, South Carolina, Tennessee, Utah, Virginia, and Washington.
If you’d like to tap your equity without going into debt, check out Unlock.
Click here for some friendly, free no-obligation information.
5. Harness the power of professionals
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.
Ready to start a new, happier chapter of your life?
Click Here and See What NDR Can Do for You!
Bonus: Join 1+ million Americans banking $1,000 extra every year
What if we told you there’s a way to earn an extra $1,000 every year without having to work for it?
There is: It’s called the Money Talks Newsletter, and it’s free. Our more than one million subscribers report saving an average of $991.20 annually thanks to our news and advice, including lots of articles and information to spend less, save more and invest like a pro.
The Money Talks Newsletter takes less than five minutes of your day and is designed specifically to make you smarter and wealthier, and without boring you to tears in the process.
Sign up for the FREE Money Talks Newsletter. It takes 10 seconds to subscribe, and if you don’t like it, 10 seconds to unsubscribe. And we never, ever sell your info. Because that’s just not nice.
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