Debt Cards, And You, Interest Rates

Category: Finance, Credit.

When you get offers for credit cards in the mail do you stop and look at the interest rate?

Many people simply gloss over these numbers and it s silly for them to do this because when they don t stop to consider the interest rates they could literally be throwing money away each month. Do you even know what the rates are on your current cards and do you even care? Interest rates affect the affordability of everything in our lives and they are important whether you have just one debt card or many of them. Are you wondering why interest rates should be important to you? Debt Cards, And You, Interest Rates. It s simple really, they are important because they determine how much you are paying in addition to the charges that you make each month. This is a big difference because who couldn t use an extra$ 300 in the bank?

For instance, if you have a card with an 18% interest rate and your balance was$ 3, 000 you would be paying roughly$ 540 in interest but if you had a card with an eight percent interest rate you would be paying just$ 240 in interest! When you have debt it is important that you know what you are paying the card company for the convenience of using their money. If you find that you are paying a lot in finance charges you can always transfer your balance to a card with a lower finance rate. Even if you didn t pay attention to this in the past it is not too late to look into it now. When you do this you could be saving yourself hundreds or even thousands of dollars per year. If you have several cards with several thousand dollars on each and you are paying large financing charges you are literally throwing your money away.

If you have more than one store or debt card you may find that you are able to save even more. You need to seek out options that are going to give you lower interest rates because it will allow you to pay off your debts quicker and stop accumulating so much in the way of late and finance charges. This is a straightforward way to do just that. Who doesn t want to find a way to decrease the debt that they have? As you can see, the finance or interest rates on any given card are important to you. You ll find that the rates vary wildly from card to card and that some are many points lower than the other.

You might have not even known what these numbers mean before, but now that you do, you need to be more selective. The lower the rates the more affordable the cards will be for you. If you have a card already that has a very high rate when you start shopping around, you should definitely look into paying off the balance with a loan or transferring the balance to another card with a better financing rate.

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