3. Balance transfer credit card

We all know that the worse your credit score is the worse your interest rates will get. The least fortunate of us have to deal with rates higher than even 20%.

But if yours isn’t *that* bad, it may be time to look into transferring your balance from a high-interest credit card to one with a lower rate. You might even find an issuer willing to offer a 0% introductory APR.

This method is not without its downfalls and you have to be especially careful if you decide to make the switch. Introductory rates usually last between 12 to 24 months and you have to pay off the balance before the deadline.

If you fail to do so then you might be faced with a serious problem- getting charged back interest form the original purchase date! That’s why you need a very good plan and you need to stick to it no matter what.

Lastly, don’t sign anything without checking the fine print first. In return for the generous 0% APR, you might be charged a fee equal to 3 to 5% of the transferred amount. In this case, check to make sure that your savings still have potential!

4. Credit card consolidation loan

This method is for those who have constantly struggled with coming up and maintaining a plan. If you’ve already tried several approaches then credit card consolidation loans might work best. That’s because they take the guesswork out of the equation and all you have to worry about is just making payments.

Here’s how it works. If you have good credit then you can use this low-interest personal loan to pay off several debts at once. They’ll combine into one balance with a fixed interest rate and a repayment period. The rates can be anywhere between 5% and 30%. Remember that credit card offers sit at around 15%.

By the end of your loan term, you’ll clear your balance to the repayment schedule. You’ll also notice how much money you’ll save with this method, so it’s definitely worth a shot.