Getting out of Debt

Reducing the interest on Credit Card Debt

Credit Card debt can be expensive and a real drain on your life, constantly worrying about keeping up with payments and paying over the odds with high interest rates.

Our research shows that interest rates can be on average over 16% a year. There are a number of ways to reduce credit card debt, IVA’s bankruptcy, consolidation loans and more, however in a lot of cases simply switching cards for a lower APR (interest rate) could save hundreds of pounds a year, if you can pay more than the minimum payment each month, you will not pay as much interest and pay the debt of quicker, even a couple of pounds a month can make all the difference.

Balance transfer cards compare balance transfer cards is a good way of reducing the interest for a set period of time of time, transfer the balance from high interest rate cards to a card with a smaller interest rate or zero percent rate, remember to try and clear the balance before introductory offer expires.

Some 0% cards will charge you a balance transfer fee, usually between 2 and 4% for each transfer, if you don’t clear the balance and want to keep the payments low, then you will end up switching cards every 6-12 months. Some companies offer a lifetime balance transfer rate, it’s not 0% but is a lower rate on the balance transferred for life, this option can still save you hundreds pounds in interest every year.
© Upshot Media Ltd

Disclaimer: Please note the above article does not constitute financial, credit or any other advice, we suggest that if you are unsure you take independent financial advice or conduct your own research. Rapid Retail Direct Ltd and pricefilter.co.uk can not be held responsible for any decisions made from reading this article.