Consolidating credit cards canada
Alternatively, if you transfer your ,000 in total credit card debt to a balance transfer credit card with a promotional interest rate of 1.99%, you’ll pay only .50 in interest charges per month.
The lower interest rate means a greater proportion of your payment goes toward paying down the principal and less towards paying interest.
At those interest rates, you’ll pay 8.29 in interest charges per month.First, determine which alternate debt tool is best for you. You could use a line of credit, a low-interest credit card, a balance transfer credit card, or a home equity line of credit.If you’re looking for the absolute lowest interest option, a balance transfer credit card with a promotional interest rate below 2% is the right choice.But like all powerful tools, credit cards must be used wisely.If you aren’t disciplined with your credit card spending, and you don’t pay off your balance in full every month, you’ll incur interest charges.