Matching your annual income to the amounts you incur in mortgage or car payments can be a real challenge. Most people, unfortunately, still don’t know exactly how much they are getting out of a given bill. Some of you might actually be getting buried under a thousand pounds extra a month by not reading the letter of the fine print. Not having the knowledge to determine whether you have hit that debt situation or not is the most costly mistake you can commit in all of our lives.
Consumers who are stuck in this situation should take the time to address the situation before it rages on. And unless you recognize the signs, it could take more than one contact to get the situation under control. You might be able to call an agency and see if they can help you. Or you might have a co-worker who struggles to make ends meet as a supervisor. Knowing that you are dealing with a situation that is affecting so many families every day is a smart move.
Knowing that a small percentage of each monthly payment is also going to cost you a large sum each month can be even wiser. What we call debt consolidation is a massive consolidation of all of your debt into one single payment. This has the power to dramatically cut back you debt and drastically cut out the bad stuff. The best part about debt consolidation is; it is a way for the consumer to ensure that they will not end up paying more just to keep the bill under control. You don’t have to start off with a bunch of debt and trim them all to one payment each month. This keeps the amount you owe where you should be within a reasonable amount of time.
The goal of debt consolidation is to eliminate your significant other debt. When you do, you break your debt down into smaller payments at a lower rate of interest. When you are paying off your debt at a lower rate of interest, you can get a better deal on your finances. When you are paying off your debt at a higher rate of interest, only the last few payments of each debt settlement allow it to be included in the next payment. Your money is easier to come by for everyone if you are taking care of your financial health in a timely manner.
Low Rate Credit Cards: An Introduction
What’s the low rate credit card – and did you know that they didn’t come free? They did have a promo that was very attractive – literally! Let me explain.
Introductory periods for low rate credit cards were very thin, so the promos were pretty sweet. And they were good for a couple of months – as long as a year. The rates weren’t steep, a mere 3.99% flat rate. So, if you maxed out your credit card – until it was gone, of course!
Then came the Visa and Mastercard offerings. These cards offered a regular low rate of interest that came with a very attractive 0.5% introductory APR on balance transfers! It was a big surprise – and also one that might make you regret the card out of the bag! After all, is a low rate of interest not something to hide?
Then came the plastic money – with the ability to transfer all of your balances from other cards into a low rate credit card.
What used to be known as Balance Transfers were very tough for low rate credit cards. These cards would offer various bonuses, ranging up to 3.99% on balance transfers, and even 5% on purchases. The offer was fairly basic – this is all known as the ‘sweet spot.’
Then came Visa and Mastercard offerings – actually, just two cards with a similar package called Visa . Although they hadn’t made all their low rate credit offers completely free, they did have enticing features for just $10. This card offered 0.5% introductory APR and 1.29% fixed rates on transfers. On its introductory offer, the offer was 3.99% (up from 2.99%).
I’ve yet to understand the reasoning behind the various bonuses offered for up to 3.99% on 0.5% deals, but I can clearly tell you that the APR is pretty steep for these cards – up to 10.00% is a new low for such cards. This is good for transferring a balance from a card that rates a 3.99% rate with a very attractive 0.5% APR. To clarify, a 0.45% rate takes you to 11.29% and a 11.29% rate with a very attractive 12.59% APR, although you may pay a slightly higher rate to transfer the balance to the other card.