5 Surprising Ways to Dodge Interest and Destroy Debt
Managing debt and interest levels can be like a game of Whac-A-Mole. As soon as you smash one debt down with a hammer, another one pops up to replace it. It doesn’t seem to matter how many times you sling that tool in the direction of the debt – it always rears its ugly head again, often bigger than it was before. So, how do you dodge interest and destroy debt? Use the following methods:
You would be amazed at the change small cash loans can make to your debt and interest levels. If you know that missing a credit card payment is going to cost you dearly, then a cash loan can cover the difference with a far more manageable interest rate and repayment terms.
The beauty of cash loans from reputable lenders is the transparency they offer. When you choose the right loan provider, you can be well aware of your obligation while enjoying peace of mind and affordable repayments. Use these loans tactically, and you can destroy debt and dodge interest with far more ease than you might have thought.
Credit Card Transfers
A method of interest evasion that has been growing in popularity is the art of credit card transfers, also known as the credit card shuffle. This is the process of moving your credit card debt over to another bank or company with lower interest rates and more beneficial repayment terms.
This can be an excellent option for those who have previously chosen a credit card scheme or company they can’t manage. Before you try this method of interest dodging for yourself, however, be aware of balance transfer fees. Some companies charge between three to five percent of your transferred balance, then charge you interest based on your credit history after a specific period has passed.
See an Expert
Dodging interest and destroying debt is not all that easy for the average person, but it could be for an expert. If you’re drowning in a sea of debt and see no way out, then a financial expert could be your guardian angel. Budgeting services are often free and allow you to get to grips with every part of your finances. You can then learn exactly what you owe and whether you can budget a little better to reduce that figure.
Know Your Grace Period
The average interest rate on a credit card in 2019 was between 12 and 16 percent. If you were to buy a lounge suite for $4,000 but didn’t pay that balance before the end of your grace period, you will need to pay around $480 to $640 in interest. That’s why it’s paramount to know your grace period – the window that no interest fees are applied. Most grace periods are between 21 and 27 days.
Don’t Fall for Promotions
When you see the TV you’ve wanted for ages advertised with an “interest-free” deal, don’t be fooled. It might seem like a sweet deal to not have to pay interest, but it’s the deferred interest they’re waiting to profit from. This means if you fail to pay off the item within a specified period, they will hammer you with interest. Want the TV? Save for it.
If you want to be the master of debt destruction and interest evasion, then you have to be proactive. See an expert for help on budgeting and debt management, look into fast cash loans, and be aware of those “desirable” credit card deals that seem too good to be true. You’ll be surprised at how quickly you can become a money master.