If you are wondering why “The Fed” is slashing interest rates in order to reverse economic woes the answer to your query is the fact that high interest rates are very difficult for a borrower to deal with.
There is much in the news today regarding the credit crisis and awful economic downturn that the public is now dealing with. One of the main reasons for this economic slump is the fact that many people are simply paying far too much interest on their credit cards. After all, if a cardholder is paying 24% APR vs. 14% APR then the ability to pay off the card will be impeded. This is why it is critical to transfer balances from a high interest card to a lower interest card.
This is not a complicated process because there are a number of excellent credit cards out there that cater to those looking to save on their interest payments by transferring their balances. The banks issuing these Visas, MasterCards, and Discover Cards are solid financial institutions that provide an excellent deal to the applicant. After all, they would welcome your business and by providing a sincerely great deal the ability to acquire your business is made much easier.
But, let’s not worry so much about the bank’s finances and instead focus on the finances of the applicant. If you are finding yourself in a position where your credit card debt is mounting then you need to get out of that situation. The most common way to do this is through the aforementioned process of transferring balances to cards that have significantly lower interest rates, less expensive annual fees and more agreeable terms of service and conditions. While your debt will never go away until you pay it off, if you can make the final payoff amounts lower by cutting the interest the interest rates then you can pay the whole thing off much quicker.