Would you like to find out what those-in-the-know have to say about low interest credit card? The information in the article below comes straight from well-informed experts with special knowledge about low interest credit card.
A low interest credit card is the ultimate quest for most people seeking plastic these days, however most of us are distracted by credit cards that are marketed to our specific lifestyle or hobby. Credit card companies learned years ago that most of the credit cards are “bought” on impulse and usually reflect the applicant’s hobbies i.e. sports, poker, travel and many more niches. They also found out that when shoppers buy the “sizzle” of their product they are less likely to scrutinize the cost. It’s wise to understand that credit cards and Vegas share a similar profit margin and winners built neither.
Every year our nations colleges graduate a new wave of credit hungry, upwardly mobile professionals that will soon begin their credit career. This is the credit card industry’s largest target market, get them and get them early. Most graduates under the age of 25 years of age are carrying in excess of $7,000 in credit card revolving debt, and paying an average of $1400 a year in interest on this debt. Most credit card company’s bill at 2% of the balance ($140), which only reduces the principal balance $280 bucks! How many young college grads do you think put less than $280 a year on a card?
Using a low interest credit card wisely can strengthen your credit, provide security and help you build your nest egg for the future. Unfortunately most young people are not only strapped with debt, but they are robbed of the ability to save money due to the interest they are paying. What if the young people that were in debt were able to save $1400 per year instead of spend it on interest? Most college grads would have almost $7000 in savings rather than $7000 in debt by age 25, that's a $14000 swing! This all begins with credit restraint, planning and a fundamental understanding of what credit cards were originally designed for.
It's really a good idea to probe a little deeper into the subject of low interest credit card. What you learn may give you the confidence you need to venture into new areas.
At Direct Banc we believe in credit cards, in fact they are our livelihood, however we also believe that our product is widely misused. Credit cards are as dangerous to some borrowers as alcohol is to alcoholics. We feel that advance education is the best defense to help potential credit card users before they find themselves in trouble.
Some practical advice if you do have excessive credit card debt is to begin to look at your credit card debt in terms of principal and interest. If you multiply your interest rate by your balance then divide by 12. (19% x $7000 = $1330 divided by 12 = $110) This number is the amount of interest you will pay on that credit card each year and month respectively. Now take your outstanding balance and divide by how many months you would like to have the card paid of in. ($7000 divided by 36 months = $194) If you combine these two monthly payments, ($110 + $194 = $304) they will give you the amount payment you need to make.
There are credit cards available that have “life of balance” transfer options. These low interest credit cards will give you one low fixed interest rate on balances that you transfer to them. The trick here is to close the account you transfer from. If you were able to lower the interest rate to 7.9% (we have several that do this for people with average credit) you can cut your annual interest by more than half! 7.9% X $7000 = $553, and divide this number by twelve and your interest payment is now only $46 per month! This means you can make a $250 payment and pay your balance off in the same time frame, or even better pay it off sooner by continuing to make the $304 payment.
There's no doubt that the topic of low interest credit card can be fascinating. If you still have unanswered questions about low interest credit card, you may find what you're looking for in the next article.
0 komentar
Post a Comment