Low Interest Environment

Posted by Mikalah On August - 17 - 2012 0 Comment

You know you are in a low interest rate environment when credit cards are just bending over backwards to get your business. I suspect this “cheap money” environment will hold true for several more months but now is the time to take advantage of what they have to offer.

Now before I get too far, I am not suggesting that you run out and charge your credit cards up with things you never wanted to buy in the first place. But this is a good time to acquire a larger item at a low finance rate – or better yet, “restructure” your current debt to a lower interest rate.Credit cards often offer low rates if you “move your other balance” to their cards. Beware of the fine print, but if everything checks out, you can often receive rates much lower than what you are currently paying. Recently I went to purchase a new motorcycle for what seems to be a growing collection and the credit card company offered me 1.9%. I knew rates were low but wow – even I have to consider having debt at that low rate (especially when the same money can be used elsewhere to earn better than 1.9%).

Again, this is a great time to restructure and move some debt around to a lower rate card. Just keep in mind, this is only good if you don’t run out and build more debt on the (now) free card.

Take advantage of this low interest environment while you can. Remember, half of building wealth is cutting what you have to pay other people – high interest rates certainly come under that category.

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