Tag Archive for: credit cards

Stop Overpaying! Save Big on Credit Cards and Keep More Cash!

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Save big on credit cards and keep more cash today! If you’re tired of watching your hard-earned money disappear into high-interest credit card payments, you’re not alone. But don’t worry, there’s a solution! By lowering your interest rates and repositioning your debt, you can save thousands of dollars, pay off your balances faster, and keep more cash in your pocket.

Today we are going to discuss how you can take control and make your money work for you.

Why Pay More When You Can Pay Less?

High-interest credit card debt is like a leak in your financial bucket. It not only drains your cash, but it also keeps you stuck in a cycle of payments. However, there is a solution! Instead of sticking with those sky-high rates, reposition your debt to a lower-interest option like a home equity loan or 0% credit cards.

By making this one smart move, you can:

  • Save on interest payments
  • Pay off debt faster
  • Free up money for what truly matters

Example: The Cost of High-Interest Credit Cards

Let’s look at an example of someone with three credit cards totaling $21,000 in debt:

  1. Card 1: $7,000 at 19% interest
    Monthly Payment: $184
  2. Card 2: $7,000 at 24% interest
    Monthly Payment: $213
  3. Card 3: $7,000 at 29% interest
    Monthly Payment: $244

That’s $641 per month in payments. After putting these numbers in the online debt payoff calculator, it would take 4 years and 6 months to pay it off, with total payments of $34,320. Just to clarify, that’s over $13,000 in interest alone!

The Power of Lower Interest Rates

Now, let’s see what happens if you reposition that $21,000 into a home equity loan at 8.5% interest. Here’s what changes:

  • Monthly Payment: Same $641
  • Time to Pay Off: 3 years and 4 months
  • Total Payments: $25,296

You save $9,024 and pay off your debt 14 months faster! That’s the power of lower interest rates.

How to Reposition Your Debt

Ready to save big? Here are two easy ways to get started:

1. Home Equity Loan

  • Use the equity in your home to consolidate credit card debt.
  • Rates are much lower than most credit cards.
  • Make one monthly payment instead of juggling multiple bills.

2. 0% Credit Card Balance Transfers

  • Many cards offer 0% introductory rates for 12–18 months.
  • Transfer your balances and pay no interest during that period.
  • Repeat this strategy every 18 months until the debt is gone.

Tools to Help You Save

You don’t have to figure this out on your own. Try tools like Calculator.net’s Debt Payoff Calculator to compare options. Input your debt details, payments, and interest rates to see exactly how much you’ll save.

Take Control of Your Debt Today!

Why overpay when you don’t have to? By repositioning your debt, you can save money, get out of debt faster, and keep more cash in your pocket to enjoy life. It’s all about making interest work for you, not against you.

Take the first step now. Visit SmartWithDebt.com for more tools and resources to help you get into good, healthy debt. Have questions? Contact us today! We’d love to help you run the numbers and create a plan that works for you.

Watch our most recent video to find out more about how you can save big on credit cards and keep more cash!

Start saving today and take back control of your finances!

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The pros and cons of 0% APR credit cards

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Today we are going to look at an article that discusses the pros and cons of 0% APR credit cards. A 0% APR credit card can be a helpful tool for managing debt, but only if used wisely. With these cards, you can pay off your balance without interest during the intro period, which could save you a lot of money. For example, if you have $4,000 in debt at 20% interest, it could cost you around $906 in interest. With a 0% APR card, that number drops to zero, allowing you to pay off the balance faster.

However, there are downsides. You may need to pay a balance transfer fee, and if you miss a payment, you could lose the 0% APR offer and pay higher interest. Plus, once the intro period ends, the remaining balance will start racking up interest again at the card’s regular rate.

These cards can also offer perks, like rewards or protection on purchases. They may also help improve your credit score if you use them responsibly. But be careful—if you’re not disciplined, you might find yourself with more debt than you started with. If that happens, or if you’re not able to pay off the balance in time, a 0% APR credit card might not be the best option.

In short, a 0% APR card can be a great tool for debt reduction. However, you need to stay on top of payments and have a clear plan.

Click here to read the entire article.

Contact us today if you have more questions regarding the pros and cons of 0% APR credit cards.

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U.S. credit card debt

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Today we are going to share an article regarding U.S. credit card debt. Experts like Rakeen Mabud point out that the Federal Reserve’s rate hikes are making life harder for those who rely on credit cards. Interest rates are becoming a bigger burden than inflation itself.

The credit industry’s lack of competition is also a factor. With fewer options, credit card companies are charging record-high APRs. This is making it tough for consumers to break free from debt. Additionally, new financial tech products like “buy now, pay later” are making it easier for consumers to spend. Another thing to keep in mind is that these products often don’t follow the same rules as traditional credit cards. Therefore these products are adding to debt without having the proper protection in place.

In conclusion, the rise in credit card debt shows how inflation and high interest rates are hitting lower-income families hard, even though their struggles may not immediately affect the overall economy. Where do we go from here and how can we decrease credit card debt? Only time will tell.

To see the complete article please click here.

Do you have questions regarding U.S. credit card debt or how you can decrease your credit card debt? Contact us today!

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How to Pay Off Your Debt FAST and Enjoy Life MORE

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Debt can weigh you down, but with the right plan, you can pay off your debt fast and enjoy life more. It’s all about finding the right strategy to cut your interest rates and speed up your payments without changing your budget. Let’s walk through how you can do this.

Step 1: Reposition Your Debt to Save Money

One of the easiest ways to pay off your debt fast and enjoy life more is to move high-interest debt to a lower interest option. Think of it like this: if you’re paying 19-29% interest on credit cards, that’s a lot of extra money going to the bank. But, if you can move that debt to something with a lower rate, like a home equity loan at 8.5%, you’ll pay less in the long run.

For example, let’s say you have $21,000 in credit card debt spread across three cards:

  • Card 1: $7,000 at 19% interest, with a $184 payment
  • Card 2: $7,000 at 24% interest, with a $211 payment
  • Card 3: $7,000 at 29% interest, with a $244 payment

Altogether, you’re paying $641 a month. If you keep paying at this rate, it will take over four years and cost you about $34,320 to pay off that $21,000.

Step 2: Use a Home Equity Loan

Now, imagine moving that $21,000 to a home equity loan at 8.5% interest. With the same $641 payment, you would pay off your debt in just three years and four months. Not only would you save 14 months of payments, but you’d also save around $9,000 in interest!

By taking action and repositioning your debt, you can pay off your debt fast and enjoy life more. That’s money back in your pocket, and fewer months spent worrying about payments.

Step 3: Use 0% Credit Cards for Faster Payoff

Another smart strategy is to transfer your credit card balances to 0% interest cards. Many of these cards offer an introductory period where you don’t pay any interest for up to 18 months. That means every dollar you pay goes directly toward paying off your balance, not interest.

Imagine moving your $21,000 balance to a 0% card. You keep paying $641 a month, and for the first 18 months, it all goes toward paying down the debt. You’ll knock out a big chunk of what you owe before the interest kicks in, helping you pay off your debt fast and enjoy life more.

Step 4: Stick to Your Plan

Once you’ve repositioned your debt, the key is to stick with it. Keep making the same payments, and don’t add new debt. It might feel like a slow process at first, but you’re saving time and money in the long run.

By using the same payment but shifting your debt to a lower interest rate, you can shave months or even years off your payoff schedule. And that’s how you pay off your debt fast and enjoy life more.

Conclusion

Paying off debt doesn’t have to be a burden. With simple steps like moving to lower interest rates or using 0% credit cards, you can pay off your debt fast and enjoy life more. It’s about being smart with your debt, sticking to a plan, and letting interest work for you, not against you.

Watch our most recent video to find out more!

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Do You Know How to Calculate Your HELOC Payment?

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Do You Know How to Calculate Your HELOC Payment?

Thinking about adding a Home Equity Line of Credit (HELOC) to your financial toolkit but unsure about the payments? You’re not alone. Many people want to know what to expect before they sign on the dotted line. In this guide, we’ll break down a simple way to calculate your HELOC payment using real examples. Let’s get started!

Understanding HELOC

What is a HELOC? A Home Equity Line of Credit (HELOC) is like a mortgage on your house, however, it works more like a credit card. You get a starting balance that you can borrow against, and during the draw period, you can borrow and pay back as much as you like. To clarify, this draw period usually lasts 5 to 10 years.

Example Scenario

Let’s look at an example to see how it works.

Someone wants to move $20,000 of debt to their HELOC because they have credit cards with higher interest rates. They want to know what their payments will be after the first month.

Step-by-Step Calculation of your HELOC Payment

  1. HELOC amount: $20,000
  2. Interest Rate: Most HELOCs start at Prime. For this example, let’s use an 8.5% interest rate.

Calculating the Interest

  • Yearly Interest:
    • $20,000 × 8.5% = $1,700 per year.
  • Monthly Interest:
    • $1,700 ÷ 12 = $141.67 per month.

So, the rough monthly payment is about $140. Remember, this is just an estimate. The actual amount can vary slightly each month since interest on a HELOC is calculated daily.

Comparing HELOC Payments to Credit Card Payments

In this case, the person was paying about $600 a month in credit card payments. Of that, $400 was just the interest. By moving everything to a HELOC, they now pay around $140 in interest. This change saves them about $260 per month.

Conclusion

Calculating your HELOC payment can help you understand your financial options better. If you have questions or need more examples, feel free to ask in the comments. We’re here to help!

Download the HELOC Payment Calculator here! 

For more tips and tools, check out our other videos and resources. And remember, the goal is to use debt wisely so it doesn’t use you.

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