If your credit card balances are on the rise and you are paying high interest rates, it can feel like you are being smothered by a deep pile of debt that you will never dig yourself out of. Many people have goals to lower their principal on loans or to lower their interest rates, but setting a goal and making the goal a reality are two very different things. This year is the perfect year for borrowers to tackle their debt problems and resolve their debt so that it does not take control of their lives. Read on and find out why this year, of all years, is the best year to get out of debt.
Short-term Interest Rates Are Currently at a Low
Long-term interest rates may be on the rise, but the same cannot be said for the rates of products that are classified as short term loans. These short-term rates, which are applicable to everything from student loans and car loans to credit cards and other financial products, are at an all-time low regardless of the movement in rates for long-term products.
Credit Card Introductory Offers of 2014 Will Save You
More and more credit card companies are offering introductory 0% interest offers for as long as 18 months and percentage rates in the single digits for the most creditworthy cardholders. This means that you can transfer the balance on your higher interest cards and save hundreds of dollars in interest payments each month or thousands of dollars over a period of a year.
Conditions are Perfect for Refinancing your Loans to Lower Your Interest
According to Faber Inc., a professional Alberta bankruptcy trustee, there are several warning signs to look out for that show you are in financial distress. Some of these warning signs include: having no savings, living from check to check, making minimum payments on credit, falling behind on living expenses, and using credit to pay for basic expenses. If any of these apply to you, it is time to take action so that you can get out of debt while the rates are still low. Refinancing your vehicle while interest rates are low or refinancing your student loans, you can see the light at the end of the tunnel.
This Year is the Year to Make Getting Out of Debt a Priority
Your life revolves around how much debt you carry. If you are carrying a lot of debt, it is like taking a self-imposed pay cut. It will cost you not just monthly, it will cost you daily. With more debt, you have fewer options for the future. Debt is a problem that perpetuates itself and that must be tackled sooner rather than later.
The moment you start to let your finances get out of control you can start to feel helpless. Be sure to take the necessary steps to get a fresh financial start, and take advantage of the financial market while it can benefit you.