It?s bad enough facing huge increases in power prices, but how would you feel about paying an extra 15% more for everything you buy?
If you don?t pay off your full credit card balance each month, the chances are that you?re already paying that?much extra in interest, as rates range from?8% for supposedly low-fee cards?to a whopping 21% for cards dripping in rewards.?
Yes,?buying?what you want, when you want?feels good. But?a?bargain is not a bargain if it comes with?hefty?interest charges.?Therefore,?there is?never a wrong time to get credit wise?and stop dropping your hard-earned?cash on padding out the banks??fat?profits.??
GOING INTEREST FREE:
Use your savings?
Use your savings to cancel your debt, as any returns you will be earning on your savings won?t match the?interest rate your credit card provider?will be charging.?
Switch your balance to one offering a 0% grace period,?and use that time to get serious about reducing your debt, or?choose?a card?with the lowest?interest rate?you can find instead.??
Broker a new deal
As?home-loan interest rates?are at?an all-time low, it has never been a better time to consolidate your debts into one, manageable sum.?Get in contact with your?trusted Mortgage Broker?and talk to them about refinancing your home loan to incorporate your credit card debt. It?s an easy process that could save you thousands of dollars.?
But just remember:?once you?ve paid off your credit card debt, keep it off. Debt is like a diet, you?ve got to work at keeping the numbers off.?
Louisa Sanghera is a Finance Broker for Residential Mortgages, Vehicle and Asset Finance, Commercial Lending and Budgeting and Cashflow Coaching with Zippy Financial.
She has?gained more than 30 years in the Banking and Finance Industry, and since founding Zippy Financial, has become a multi award nominated expert in the field of finance featuring regularly in industry press and speaking at finance and investment seminars across the country.