Fighting the High-Interest Credit Battle

A good credit rating is almost as important as a good driving record these days.  Your credit score can determine whether you’ll get approval for everything from an auto or mortgage loan to your eligibility for the local food cooperative.  And if your credit rating is deemed anything less than average you may find yourself paying from 25 to 30 per cent interest on your outstanding balance every month.  If that doesn’t sound significant, then think of it this way:  if your outstanding balance is more than $4,000 you will be paying over $100 just in interest!

 

Obviously, there are more valuable uses for your money than to make credit card providers rich.  Perhaps you want to take a trip someplace, and stay at a quality location.  Using Hotels.com you can find a place with a top-rated hotel where you and your family can enjoy a great stay with quality electronics equipment and services at reduced rates.  And they will give you great discounts when you make reservations using a Groupon promo code.  You can even use one of those high-interest credit cards, with the comfort that the price is being discounted by using a Groupon.  Enjoy the facilities and services while getting a break from life’s hassles; or even put yourselves up at a quality hotel when you take the youngsters off to college for their freshman year.  Make plans and reservations early for the alumni reunions and homecomings; they always tend to sneak up on you.  Nothing is worse than finding out all the rooms are booked up because you waited too long before making reservations for homecoming weekend.

Does this sound like it conflicts with a plan to get control of financial matters?  Well, incorporate your trip and stay in your financial strategy: use your high-interest credit card to book your stay, but use your Groupon to reduce the actual amount you will be paying.  Then use that amount saved to pay off that excessive interest charged by the credit card company.  When you’ve managed to pay off your balance due using such a strategy you can begin seeking a different credit card with a more reasonable interest rate.  And you will have improved your credit rating by successfully paying off the outstanding balance on a card that was abusing a loyal customer.

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