Don’t get bogged down by credit card debt – consumer reports savings accounts with the best interest rates
One of the smartest investments you can make today is to pay off credit card debt. Best term deposit interest rates in the world “Being charged interest at a double-digit rate is a killer,” says Schneider. Deposit interest rates uk “Paying it off is the same as earning a double-digit rate of return.”
Use your good credit. If you have a credit score of at least 700, try to wrangle a better deal, says Greg McBride, chief financial analyst at Bankrate.com. Best fixed deposit interest rates in usa Some cards currently offer balance transfers that charge no interest for 18 to 21 months. Anz online savings account interest rates That’s a long “free” stretch to tackle paying off your debt. Savings account interest rates usa Most transfer deals hit you with a 3 to 4 percent transfer fee, so McBride suggests contacting your credit card issuer to say you will transfer
unless it reduces the rate it charges. Savings account interest rates usaa Then compare the cost of the transfer with the cost of paying off your current card at the new lower rate.
Trim your expenses. If staring at a statement that shows you owe thousands of dollars is paralyzing, Landon recommends focusing instead on trimming your spending. Best term deposit interest rates australia “Add up your expenses and you may have $50, $100, or even more that you can cut a month, and that is going to be a big help in paying down your balance,” he says.
Tap your savings. It never makes sense to empty your emergency savings, but if you have more than you need (usually three to six months of living expenses), use some of that extra money to pay down your credit card balances. Best long term deposit interest rates australia It is probably earning just 1 percent or less in a bank account, and if you can use it to pay off debt at an interest rate of 15 percent or more, that’s a big payoff. Pnb saving account interest rate 2015 Schneider says money sitting in cash in a brokerage account might also be earmarked for paying off the credit card balance.
Work it off. “Nobody wants to hear this, but bringing in more income is a great way to tackle your credit card debt,” says Bankrate’s McBride. Best fixed rate savings accounts monthly interest Size up how quickly you could be out of debt if you earmarked 100 percent of overtime pay, income from extra projects, or income from a second (temporary) job to paying off your balance.
Refinance to a lower fixed rate. If you have a strong credit score, you might be able to lock in a fixed interest rate well below 10 percent with a personal loan from an online lender such as Prosper, SoFi, and Discover.