Low Interest Rate Credit Cards: Start Saving Today

admin — Wed, 05 May 2010 00:03:50 +0000

If you carry an outstanding balance on your credit card, youre not alone. Nearly 70% of Americans keep a balance on one of their credit cards from month to month. And many of these cards have sky-high rates, which add up to hefty amounts in interest expense. By switching to a low interest rate credit card, you can save hundreds of dollars in interest. Starting with great introductory offers, low interest rate credit cards help you get back on track while enjoying the benefits of a credit card.

Introductory Offers

Credit companies continually offer customers incentives to sign up for their cards. This often includes an initial 0% interest rate. Many low interest rate credit cards carry this 0% APR feature. It allows you to begin saving even before the low interest rate kicks in.

The interest-free time is yours to take advantage of. You can make purchases and pay for them over a period of a few months, with no additional cost. If you carry an outstanding balance on a different credit card, you can transfer it to your new one. Then pay off the debt during the 0% APR time period. Before you do so, though, be sure to check that the charge for a balance transfer is reasonable.

Significant Savings

Low interest rate credit cards allow you to save even after the introductory period. Consider the difference between a credit card that charges an interest rate of 9% and one that charges 20%. If you have a 9% rate and carry a balance of $2,000 for an entire year, you will pay $180 in interest. With the higher rate of 20%, the interest expense rises to $400. That comes out to a difference of $220, which is a considerable amount. If you apply this figure to the principal balance, you will be able to pay off the debt much more quickly.

Check the Attached Fees

When looking for a low interest rate credit card, you will want to compare the various offers. In addition to looking at the interest rate, check the fees attached to the card. Some low interest rate credit cards include an annual fee, charges for balance transfers, and other costs. If the interest rate is low but the other fees are high, your overall savings may be reduced. For this reason, it is important to compare the interest rates and the other costs.

Create a Payment Plan

Even with the savings youll receive from a low interest rate credit card, it is wise to make a plan to pay off your balance. A simple way to do this is to check the minimum payment due each month, double that amount, and apply the extra cash toward the principal balance. If the payment due the following month is less, continue to pay the initial amount you chose. This allows you to reduce the outstanding amount in an organized, structured way.

Low interest rate credit cards are an excellent option if you regularly carry a balance. Over time, they can allow you to save a significant amount of money in interest expense. Check out your options online and then apply right away. You can take advantage of low interest rate credit cards immediately and benefits from the savings.

Savings Accounts An Overview

admin — Mon, 29 Mar 2010 22:09:30 +0000

Being in control of your finances means not only managing your current account wisely, but planning ahead too. Although we are used to thinking we will have the welfare state to fall back on, the support offered by state benefits is far from generous – most people would struggle to exist on a basic pension alone.

Furthermore, our ageing population face an uncertain future as demographics change by the time todays thirty-year olds reach retirement theres no telling how the economic situation will look. Aside from planning your retirement, you ought to have something to fall back on in case theres a sudden change in your circumstances how would you manage if illness or redundancy curtailed your earnings?

Although these issues are serious ones, there are many ways to ensure that you and your family will be well provided for and finding them need not be a nightmare. Start today by considering how much you can afford to put by. Be realistic, but try to allocate a fair proportion of your budget aim to save at least 10% of your monthly income if you can. Secondly, look at your options this guide provides a general view of some of the more common ways to save and resources for finding more information.

How you choose to save will depend on your age, circumstances and the amount you want to invest but remember its never too late to start, and never too early to plan for your future. Even if you can only afford to put a small amount away every month, it could make a huge difference in the long run.

There are vast amounts of different ways to save and invest, and there are also tax benefits to take into account. In an effort to urge people to save, the government offer various incentives such as tax-free savings plans and childrens savings accounts.

Savings accounts often attract higher interest rates than current accounts, so you could be earning money daily without expending any effort. For those willing to diversify, there are offshore accounts and investments to consider – these are explored in more detail below.

Considering your familys financial security is often a high priority check out the sections on childrens accounts for ideas. The last section offers ways to find more information, with listings of bodies that may be able to help you.

For those willing to diversify, there are offshore accounts and investments to consider – these are explored in more detail below.

Finally, enjoy the feeling of taking responsibility for your own future!

Keep track of your savings accounts with my savings accounts » Incentives

Low Interest Rate Credit Cards: Start Saving Today

Related posts

Savings Accounts An Overview

Related posts