04 Jan

3 Ways to Pay Off High Interest Credit Cards

Did your holiday excesses extend to all aspects of your life? If so, we have a few suggestions about how you can pay down your high interest credit cards.

  1. Free cash advances on RMLEFCU credit cards*

    – Normally a credit card company would charge a fee of 3-5% of the amount of cash you withdraw. With RMLEFCU it is free. Use this cash to pay down another card or an outstanding bill.

  1. Free balance transfers onto a RMLEFCU credit card*

    – This is a great member benefit since 3% of the amount you are transferring is usually the price you pay for transferring a credit card balance.

RMLEFCU has three different credit cards to choose from.

  • Classic Visa®
  • Platinum Visa Select® – 7.25% APR*.
  • Platinum Visa® – 12.75% APR* by visiting UChooseRewards.com

The idea behind a balance transfer is simple. You open a new credit card with a low interest rate and move the balance from your old, high-interest card to the new one. Essentially, this means that the debt on your old card has been paid by the new card. After you complete the transfer to the new card, you can start paying it down. You’ll be amazed at how much you can save when your interest payments have been drastically reduced.

Bonus tip: Don’t cancel your old card — this could hurt your credit.

Other reasons you may want to transfer a balance:

  • Maybe you want to have fewer cards in your name.
  • Consolidating your balances into one payment appeals to you.
  • Eliminate confusion and keeping track of multiple cards and payment dates.

Remember, don’t use the card while you pay it off. Put it in the dresser or a safe. Give it to a loved one and tell them no matter what happens – they cannot tell you where they put it – until it’s paid off.

  1. The RMLEFCU Holiday loan has been extended 

    – From now until January 31st, 2017 you can borrow up to $2,500 at a low rate of 6.95% APR* and you’ll have up to 12 months to repay. Call our Loan Department at 303-458-6660 or visit rmlefcu.org today to begin the process.

You have a number of methods to pay down high interest credit cards. Resolve to explore these options in 2017 and make overspending in 2016 a distant memory.

*Annual Percentage Rate. With approved credit. Some restrictions may apply.

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