25 May

Dealing with rising credit card debt

Dealing with rising credit card debt

Dealing with Rising Credit Card Debt

ENGLISH | EN ESPAÑOL

Households in the United States carry average revolving credit card debt of more than $6,000, and the number is steadily growing. The Federal Reserve Bank of New York says credit card debt increased by $52 billion in the last quarter of 2021 alone. Navigator Credit Union wants to help individuals achieve financial success, and for a lot of people that means finding affordable ways to dig out of credit card debt.

One way to tackle credit card debt is by taking advantage of a balance transfer offer. A balance transfer means moving all or part of the balance from one or more credit cards to another more affordable credit card. Navigator breaks down the benefits of taking advantage of a balance transfer offer.

Lower interest rate
If you’re carrying a high balance on a department or bank-issued credit card with a high-interest rate, look towards your credit union for a lower interest rate credit card. This means more of your monthly payment goes toward getting you out of debt. You may even be able to set up a lower monthly payment or one payment less than the combined payments for several higher interest cards.

Consolidate debt
If you have multiple monthly credit card payments, a balance transfer will help you consolidate balances to one card. Having one convenient monthly payment may enable you to focus on paying off your debt more effectively. If you’re looking to consolidate balances, make sure your new credit card has a high enough credit limit to handle all of your balance transfers.

Better terms
In addition to a higher interest rate, your current credit card or cards might have higher fees, shorter grace periods and other terms you just don’t like. Taking the time to find a credit card that truly fits your needs can pay off with better terms and other perks.

If you’re shopping for a credit card to transfer your balance to, there are some things to consider.

  • Interest rate beyond the promotional period. Even if you have plans to pay off the balance during the introductory period, be sure to review what your interest rate will be beyond that timeframe. Life happens and you don’t want to be stuck paying a higher interest rate than you previously were.
  • Balance transfer fees. Some cards charge a balance transfer fee. These fees can add hundreds of dollars to your debt.
  • Annual fees. Avoid cards that carry an annual fee. Your goal is to pay off high-interest debt, not add to it.
  • Look for rewards. Getting a card that gives you rewards such as points to redeem for products, cashback or discounts can be a great benefit and offer you additional savings.

Family on Beach

Using a low-interest balance transfer to get rid of your high-interest consumer debt makes sense, and for a limited time, Navigator is offering an attractive balance transfer opportunity. Qualifying new and existing Navigator Platinum Rewards cardholders can take advantage of 1.99% APR on balance transfers for six months, plus there’s no balance transfer fees, no annual fee and no cash advance fees. Cardholders also earn unlimited uChoose Rewards® points, which they can redeem for thousands of items including cashback.

Prepare for the holiday season
Don’t let the next holiday shopping season and the urge to splurge with credit card purchases catch you off guard. Get ready early by setting up a Christmas Savings Account at Navigator. Its competitive rate together with regularly scheduled deposits can help you steadily build up your shopping fund. Then on November 1, we’ll automatically transfer the money to your savings account so you can celebrate the holidays without a worry - and without going into debt.

 

APR=Annual Percentage Rate. Membership and credit eligibility requirements apply. Cardholders pay a 1.99% APR for the first 6 billing cycles from balance transfer. After that, the APR will be 10.90% or 12.90% based on creditworthiness. Offer available Jan. 1 to June 30, 2022; subject to change without notice. See Visa agreement for uChoose Rewards® terms and conditions. uChoose Rewards® is a registered trademark of Fiserv Solutions, Inc. Visa® is a registered trademark of VISA Inc. Federally insured by NCUA.