Using your good credit to get lower rates and pay off your debt more quickly
How to Find Lower Credit Card Rates
The Dollar Stretcher.com 'Get Out of Debt' Course
Staying current with your bills and maintaining a good credit score makes it much easier to get out of credit card debt. Your good credit allows you to look for balance transfer cards. Some of them will even charge you 0% interest for a time. You may also qualify for a lower cost personal loan from Payoff or another personal loan company.
Your job is to use the tool provided below to find the best credit card for you. Select "Low Interest Credit Cards" and you will taken to the "Low Interest Credit Cards" page. On that page will be a number of current offers including those for balance transfer cards. Look at the terms and see which one could be the best match for you. Click on the "Learn More" button and begin the process of applying for a lower rate card. Once again, there are no guarantees, but there is a good chance that you'll find a lower rate that will allow you to solve your debt problem more quickly.
Transfer Debt to Get a Lower Rate. Sometimes your best move is to move debt from a higher cost to a lower cost debt instrument. For instance many people transfer higher cost credit card debt to a Homeowner's Line of Credit (HELOC) or Home Equity Loan. The loan costs less because you're moving from an unsecured to a secured debt. In the HELOC or Home Equity loan, as you'd expect, the equity in your home guarantees the loan. Find out what rates are available. You might find that you want to use a HELOC or home equity loan to pay off your credit cards.
Refinance at a lower rate. You may be able to get a personal loan with an interest rate that's lower than your credit card rate. One innovative lender that TDS has associated with is Payoff. Using psychometrics they look for borrowers that can benefit from lower rates. If you think that you shouldn't have to pay such high rates on your cards, contact Payoff. You might save a lot of money. Click here to read a review about Payoff submitted by a Dollar Stretcher reader.
If you're really not sure where to start, send us an email describing your situation. Tell us the important elements and we'll try to point you in the right direction.
Next we'll look at what you can do to restore your credit score. If you have not already completed the lessons on each of the types of debt that apply to you (see the options below), you should do so before you proceeding to the lesson on restoring your credit score.
If you are working to get out of debt, our free weekly Surviving Tough Times newsletter can be a great tool. Each issue features great ways to help you stretch your dollars and make the most of your resources. Subscribe today! You can also like us on Facebook or follow us on Twitter. We post tips and ideas daily to help you make extra cash and trim monthly expenses so you can free up additional money to put towards your debt.
Take Action Now:
- Before you take the next step, shouldn't you complete this one? Choose the option most likely to reduce your borrowing costs and begin the application process.
- Understand what the future may have in store for you if you decide not to do anything about your debt.
Choose the Next Step of Your Debt Solution Plan:
- Lower your auto loan payment(s).
- Reduce your student loan payment(s)
- Reduce your housing expense.
- Get help with unpaid taxes.
- Start restoring your credit.
- Chart your financial future.
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