The following information was provided by Navigator Credit Union:
The average person has racked up over $1,200 in vacation debt over the past year. It is therefore not surprising that many find it difficult to repay it. At least some will still foot that bill when this year’s holiday shopping season rolls around. Navigator Credit Union wants to help individuals succeed financially, and for many people, that means finding affordable ways to get out of credit card debt.
One way to tackle holiday debt is to take advantage of a balance transfer offer. A balance transfer involves moving all or part of the balance on one or more credit cards to another, more affordable credit card. Navigator breaks down the benefits of taking advantage of a balance transfer offer.
Lower interest rate
If you have a high balance on a credit card issued by a service or bank with a high interest rate, contact your credit union for a lower interest rate credit card. This means that more of your monthly payment is used to get you out of debt. You may even be able to set up a lower monthly payment or one payment less than the combined payments for multiple higher interest cards.
If you have multiple monthly credit card payments, a balance transfer will help you consolidate balances onto one card. Having a convenient monthly payment can allow you to focus more effectively on paying off your debt. If you’re looking to consolidate your balances, make sure your new credit card has a high enough credit limit to handle all of your balance transfers.
In addition to a higher interest rate, your current credit card(s) may have higher fees, a shorter grace period, and other terms that you just don’t like. Taking the time to find a credit card that really suits your needs can pay off with better terms and other perks.
If you’re shopping for a credit card to transfer your balance to, there are a few things you need to consider.
- Interest rate beyond the promotional period. Even if you intend to pay off the balance during the introductory period, be sure to check what your interest rate will be beyond this period. Life happens and you don’t want to be stuck paying a higher interest rate than you were before.
- Balance Transfer Fee. Some cards charge a balance transfer fee. These fees can add hundreds of dollars to your debt.
- Annual fees. Avoid cards that have annual fees. Your goal is to pay off high-interest debt, not add more.
- Look for rewards. Getting a card that gives you rewards such as points to redeem for products, cash back or discounts can be a great benefit and provide you with additional savings.
Using a low-interest balance transfer to get rid of your high-interest consumer debt makes sense, and for a limited time, Navigator offers an attractive balance transfer opportunity. Eligible new and existing Navigator Platinum Rewards cardholders can enjoy a 1.99% APR on balance transfers for six months, with no balance transfer fees, no annual fees, and no cash advance fees. funds. Cardholders also earn unlimited uChoose Rewards® points, which they can redeem for thousands of items, including cash back.
Get ready for the holidays
Don’t let the upcoming holiday shopping season catch you off guard. Create a Christmas savings account with Navigator. Its competitive rate as well as regular deposits can help you build up your purchase fund regularly. Then, on November 1, we’ll automatically transfer your funds to your savings account so you can celebrate the holidays worry-free.
About Navigator Credit Union
Navigator Credit Union has been guiding the Gulf Coast since 1939. Navigator is a non-profit credit union, here for members, not Wall Street investors. This means Credit Union can provide a full range of financial products and services, with better rates, lower fees and more flexibility than most banks, including free checks, home loans, car loans and credit card. Navigator has 12 full-service locations from Gulfport, Miss., to Daphne, Ala., and is committed to providing the strength, stability and financial resources members need – no matter what happens during the life. Visit navigatorcu.org to learn more or apply for membership!
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