For the roughly 40 percent of U.S. households carrying credit card debt, double-digit interest charges are a constant drain on personal finances. But there are ways to slow that drain — or even plug it.Naturally, step one is to stop adding to that debt. With the median interest rate hovering around 21 percent for credit card balances, that's a very expensive way to borrow.Think of it this way: If you're carrying a balance on a credit card with a 21 percent interest rate, and you use that card to buy lunch, you just took out a high-interest loan to buy lunch.Americans paid banks $104 billion in credit card interest and fees during the 12 months ending in March 2018, according to an analysis of federal data by MagnifyMoney, a LendingTree affiliate. Wow.Step two is coming up with the best plan to pay off that credit card debt, and one good way to do that may sound counter-intuitive — signing up for another credit card.Here's why: To make that debt go away, it has to be … [Read more...] about How to save money while paying off a high-interest credit card balance
Zero percent credit card offers
Travelling is a passion for many. But there are costs involved. There are many millennials who travel for one to two months a year, and their entire savings plan is aimed at garnering enough cash for the next trip. This is where co-branded travel credit cards come in handy. Such cards allow customers to enjoy benefits while making transactions. There are reward points that can be redeemed for air miles, flight awards, access lounge, hotel stays, etc. But it is easy to get confused given the many options of travel cards from big banks such as SBI, HDFC, ICICI, IndusInd, Axis, and American Express. The cards are mainly co-branded with travel sites, travel companies and airline firms. With the holiday season round the corner, DNA Money talked to experts to decode the co-branded travel credit cards for you. Why travel credit cards Travel credit cards offer customers an opportunity to earn free points that are redeemable for airfares, hotels or cash backs. Choosing a good credit card for … [Read more...] about Co-branded travel credit cards can help cut costs
The Federal Reserve bumped up its most important interest rate another quarter point on Wednesday, its seventh rate hike since late 2015. The Fed's target federal funds rate is now between 2 and 2.25 percent, after the central bank kept it at zero or near zero in the years following the financial crisis. MagnifyMoney analyzed Fed data to see how the rates consumers pay for loans and earn on deposits have changed since the central bank started raising them. In short, we find Fed rate changes have wide-ranging implications for consumers. Credit card borrowers are paying $110 billion in interest annually, up $31 billion from the annual $79 billion they paid prior to the first Fed rate hike in December 2015, making introductory 0 percent APR deals all the more attractive for some borrowers. Meanwhile, depositors earned significantly more from savings accounts. In the 12 months ending in June 2018, depositors earned $26.8 billion in interest on their savings accounts, up $16.8 … [Read more...] about Fed rate hike: Here’s how it hits credit cards, loans, savings accounts
Sunday July 8, 2018 12:01 AM Don't let your child fall into a trap. Written by Steve Rosen Your college-bound freshman needs a starter credit card to cover emergencies, plane tickets home and textbooks.What are your options? What should you look for? And what ground rules do you intend to put in place because you want the plastic to be used minimally?A lot of improvements have been made in the way credit cards can be marketed to college students, thanks to the Credit Card Act of 2009. College students can no longer be bombarded by card issuers with T-shirts, drink holders and other come-ons to entice them to sign up for a card the moment they set foot on campus.Credit card issuers also cannot market within 1,000 feet of the campus main gate, and students under the age of 21 have a harder time getting a standard card on their own.That said, it is generally a good idea for your college freshman to carry one piece of plastic to deal with the unexpected.Many card companies allow … [Read more...] about Kids and Money: It’s important to have ground rules for student credit cards
A balance transfer can be the perfect tool to help you pay off your outstanding credit card debt with little to no collateral financial drain. But do the fees, terms, and conditions associated with balance transfer leave you wary of it? Souqalmal.com's Ambareen Musa answers the key questions. What is balance transfer, and how does it work?Most banks in the UAE run balance transfer programmes offering low interest rates, but the ‘Zero Interest’ balance transfer deal is the most sought-after of all. The interest-free tenure is usually limited to three to six months, with some banks offering longer tenures of up to twelve months too. Can balance transfer help you get rid of debt? Yes…Let’s say you have an outstanding balance of AED 20,000 on your existing credit card, and the monthly interest charged by the card provider is 3 percent. If you repay AED 2,500 per month, it will take you about ten months to repay the debt in full. You will also end up paying close to … [Read more...] about Could ‘balance transfer’ end your UAE credit card debt?