InvestigateTV – New research from NerdWallet reports that 43% of credit card holders don’t know the interest rate on their cards, even though, experts say, knowing your interest rate is the first step to managing debt credit card.
Sara Rathner, personal finance expert at NerdWallet, suggested you look at your recent statement or log into your account to find your current interest rate.
With this information, Rathner said you can find ways to save money, such as negotiating a lower rate with your issuer or transferring your balance to a 0% interest card. You can also consider a personal loan to pay off the debt.
Rathner’s bottom line is that high interest rates hamper your ability to pay off your debts.
“It can cost you hundreds or even thousands of dollars a year, depending on how much debt you have,” Rathner said. “Think of all the other things you could do with that money, all the other bills you could pay, and the other debts you could avoid because you don’t have hundreds of dollars in interest.”
By only paying the minimum on a credit card each month, most of the payment can be made up of interest, with only a small fraction going to reduce the debt you owe.
If you’re struggling with debt, USA.gov offers free resources for managing debt and many other topics.
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