“Oh you happy, oh you blessed, merciful Christmas time” says the song – but often after the festival there is great disillusionment. That is when the credit card bill flutters into the house. What to do if the joy of giving suddenly becomes an unpleasant financial burden and the card interest threatens to gain the upper hand?
For many, having their own credit card has a touch of an upscale lifestyle. After all, you can pay with “your good name”, at least that’s what the common advertisements make you believe. Unfortunately, the “convenient” payment quickly turns into a less comfortable fault. Many simply do not know what they are getting into and how high the credit card interest rates really are.
Especially during Christmas, the seduction is great: you quickly forget whether the “ease” of paying, how much you actually spend on the wonderful gifts.
The pitfalls of high card limits and interest on debt
With many providers, the card limits granted are quickly three times the monthly income. In addition, there are interest rates of up to 12% pa on the open amounts. In combination, very large amounts of debt can come together with considerable interest charges. If the amount owed cannot be paid in full at the end of the month, the trap snaps in the form of interest. The amount owed rises continuously and it often takes a long time to pay off the total debt in installments.
Bad awakening – when interest spoils the fun
Credit card holders often pay too little attention to billing at the end of the month. Unfortunately, this also applies to the terms and conditions of card issuers. There are in fact buffeted regulations: For example, the interest is often offset against the total amount and not against the remaining amount owed and does not begin, as assumed at the time of settlement, but already on the transaction date.
In short: In the end, the use of the credit card only serves the additional return of the card issuer and makes the already high interest rates more expensive due to the hidden additional costs. When viewed soberly, the maximum permitted credit card interest of 12% is exhausted by the sometimes confusing detailed calculations in the terms and conditions of the publishers.
Fair conditions and low interest rates
Is there a way out of such situations or are you forced to pay excess credit card interest for a long time and reward them with extra fees? Yes, there is a way out: debt rescheduling through a simple refinancing loan with fixed terms and fixed monthly costs as well as a massively lower interest rate.
By refinancing via a personal loan, you can settle the outstanding debt at the card institute in one fell swoop. This way you avoid the high debt interest and can actually work on paying off your debts. With specialists like Agree Bank you get significantly lower loan interest and can use professional and transparent advice to develop a loan offer that meets your needs. This means that your monthly interest charges can be almost halved within a very short time, at fixed amounts, calculable terms and finally without any other incalculable surprises. Always with the aim that you are debt-free as quickly and easily as possible!