Save with Balance Transfers

Are you one of the 48% of credit card users who make the minimum payment on your card and have the amount roll over to the next month?

According to the Federal Reserve 15% of families report spending more money than they receive each month. (Federal Reserve) This means you could be spending 100’s of dollars more than you actually received in purchases.

Wallet Hub shows that the average credit card interest rate is 19.24% (Wallet Hub)! When you look at these cards compared to what they offer the pay off is not always there. Cards with offers like cash back, mileage and points do not prove beneficial when balances are being carried, even if only for a few months.

Looking for steps to improve? We break it down into tips for you to start back on the right path.

• Don’t close the credit cards –

  • paying off credit cards is great but it isn’t always a first step to close them. This can not only affect your credit, it can cause penalties on some cards for closing it.

• Look into balance transfers –

  • transferring your balance to a lower interest rate card like Lincoln Maine Federal Credit Union’s VISA Credit Card with a balance starting as low as 7.9% can help pay down cards faster, costing you less overall.
    If you carry any kind of balance at a high rate our number one tip is to transfer that balance! Now at Lincoln Maine FCU it is easier than ever, at EZ Card Info. 

• Store credit cards tend to have higher balances –

  • so if you need to use credit, try using a card from a financial institution with lower rates.

• Use your cash back rewards (if applicable) to pay the balance –

  • this can help pay the card down quickly and it won’t affect your primary paycheck as quickly.

• Avoid spending on credit for monthly expenses –

  • spending on things such as utilities can cause the credit balance to increase very quickly and happen month over month. Sticking to only using credit for emergencies can cut down on the monthly balance and help you pay down the balance.

• Stay away from introductory rates –

  • these rates tend to expire faster than you think. If you are thinking your card has a good rate, check your online account to confirm before putting more debt onto it.

• Pay more than the minimum balance –

  • paying above the minimum can help get that balance down to a more manageable amount.

There are more tips and tricks on the web but they are not always the most reliable. If you question the validity of a credit card tip online feel free to reach out by calling 207-794-8623 and ask a trusted member service representative.