In early of 2016, we saw a higher interest rate on credit card, and it will be climbing even another top this year. What should we do? Keep scary on your new credit card rate with current debt or fight it back?
Gather all no-rate cards now
Credit card debt normally is the biggest part in households’ debt, and since the interest is moving to a rising environment, it hurts your wallet more. However, surrendering means you lose all, pulling the trigger you can handle it. Let’s look for 0% or low-rate balance transfer offers on new credit cards to pay down your current credit card debt.
But you need to remember that the low rate card will be expired in 12 to 24 months, so utilize this to minimize your trouble in credit aggressively. And as long as you keep the payment, the more dollar paying, the lower rate going towards.
And keep in mind that after low rate expired, the new rate would be very high then put your eyes on the promotion date.
Related story: How to avoid interest on credit cards
Think about crazy future
FED rose the interest rate lately and there is no sight for them to stop increasing other times as they said. This impacts all financial market including you and me as all banks’ rates rise afterwards. Therefore, your current credit card debt would be more expensive in a near future, and you need to get a new card’s balance paid off before the teaser rate’s gone.