Credit Card Terms

Low Interest Rate Credit Cards

There is no question that prices are way up. In some instances, prices are 100 percent to 200 percent higher than they were just a year or two ago. The first assumption you need to make is that prices are going to stay high. This way, if they go back down to levels we saw a year or so ago, then you have adequately planned for inflation. If prices do stay where they are, then you are going to have to address them right now. Put the numbers for today into your retirement income plans and adjust for them. This is going to take some work, but it needs to get done. To get started, look at your budgeting and your credit cards.

Look at your credit cards. Take a look at low interest and balance transfer cards, and compare what these different cards have to offer. You can save on one monthly bill alone by cutting interest expenses. For example, if your current credit card interest expense is $100 a month with an 18.99 percent APR, and you move to a lower interest card at 9.99 percent, your interest cost might move down by $50 a month. This $50 can be used to fill up one more tank of gas, pay for some groceries or even smarter, lower your credit card balance.

The less you pay in interest and the more you pay in principal, the quicker the balance can drop to zero, and this frees up even more money every month for you. Some people like to split the difference. For example, if you move to a lower interest card and are saving $50 a month in interest costs, then take down an additional $25 in principal from the card and give yourself $25 to cover expenses.

Budget for buying in bulk and charge it all on your credit card, but make sure you pay off these purchases on your credit card at the end of the month. The benefit? You get the added protection the credit card gives you, plus accumulating any credit cards rewards points. Using a rewards card wisely can buy you back-to-school supplies, a free movie night, going out to dinner, a tank of gas or things you need around the house. Compare rewards cards and check out the ease of getting rewards. Every extra reward you get is less money you spend out of your pocket, less money charged to a card and less interest paid. If you get $100 in rewards, you save $100 from your own pocket. For some, that $100 equals a $250 swing; $100 you didn't spend plus $100 you received plus $50 in taxes you would have had to earn to make $200.

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