Being in debt isn’t easy, but it’s a common experience for people today. Maybe your bills started piling up, and you had no choice but to start using your credit cards to try and cover them. Maybe you took out a personal loan instead. Whatever the reason, you now find yourself under a mountain of debt, and it seems like there’s no way out. Don’t lose hope, though; there are several options available to you that can help you get out of debt as soon as possible.
Balance Transfer Credit Cards
If you’re in debt, the thought of opening another credit card may seem like the last thing you want to think about or do. However, experts such as financial advisors Paramus NJ might suggest you do just that.
You see, a big part of what’s preventing you from paying down your debt is the interest rate on your existing credit cards. Typically, these cards have fairly high-interest rates. They can have interest rates between, for example, 17% to 24% or more. This interest accrues on a monthly basis and prevents you from paying down your principal or debt quickly.
Pay Zero Interest
However, there are credit cards that offer introductory interest rates of 0% when you first sign up. This introductory rate only applies to the start of your tenure with this new credit card but is typically offered for at least a year’s length after the card is opened. What does this information mean? It means if you open such a credit card and transfer your existing credit card debt to it, which may cost a comparably small transfer fee to do compared to your current interest payments, you could pay down your credit debt for a year with no interest!
Of course, this option is just one of the many ideas a professional advisor might suggest!