Credit cards are notorious for charging high interest rates which are often in the 19-22% range. This is astronomical when compared to the 2.5%-3% consumers pay on their mortgage, 4-5% on HELOCs, or 5-7% percent on line of credit. You could save big money with very little effort by getting a loan product with lower interest rate and using the money from it to pay off your credit card debt. Here’s how it works, suppose you have $10,000 in debt on your credit cards on which you pay 20% interest. That’ll mean your interest cost per month will be one $167 or $2,000 per year. You can substantially lower these interest costs by going to a bank and getting a line of credit.
Now assuming the bank offers you a $10,000 line of credit with 5% interest rate you can pay off the credit card debt using the line of credit and drop your interest cost to $42 per month or $500 per year. Employing this simple strategy will save you $1,500 annually in interest cost allowing you to pay off your debt a lot faster. If you liked this video and found it useful make sure to like, subscribe, share, and hit the bell icon so you don’t miss any future videos. Also, leave a comment below to let us know what topics you’d like to learn about in the future.