Low Intro APR
No Annual Fee
Cash Back
Reward Cards
VISA
Mastercard
Business Credit C.
Balance transfer
Student Credit Cards
Frequent Flyer
Gold Cards
platinum Cards

Advanta
American Express
Bank of America
Bank One
Chase Manhattan
Discover

Bankruptcy
Slow Credit
Average Credit
Excellent Credit

You know those credit cards bills that softly come in asking politely to be paid each month? You may find that they are screaming that they are overdue or overlimit. They want to be paid now.

Credit card debt is never a good idea. With interest rates on the rise, it's an especially bad idea right now. Your options of getting rid of it are shrinking as it grows.

How?

You may have received notices that your minimum monthly payment amounts are increasing. You were probably paying minimum payments ranging from 2% to 2.5% of your balance. This leads to years and years of debt. If you owe $10,000 on a card with an 18% interest rate, you could pay it for 32 years at a 2.5% minimum payment. That results in $14,600 in interest.

Raising your minimum monthly payment is a good thing for you. It allows you to pay off your credit card debt quicker, if you don't continue to borrow. But it could be bad for your monthly budget.

With everything from gas to groceries costing more, you may find that your budget doesn't have much slack. In fact, many minimum payments could double. Ouch.

And then throw in rising interest rates. And it's not just your credit cards that have rising interest charges. If you have a home equity line of credit, your rates are on the rise. If your interest goes up by two points on a $30,000 home equity line of credit, you could be paying over $600 more a year in interest.

The Federal Reserve Board is expected to continue to boost short-term rates, so look for your rates to go even higher.

But what can you do?

The first and most important things is to not fall behind. It will kill you if your interest rates are increased and you are subjected to late fees.

You can stay ahead of the game by calling your credit card company and letting them know you are having troubles. Try to negotiate a lower interest rate. If that doesn't work, look into transfering your balance to a lower rate card. Watch out for balance transfer fees and teaser rates that skyrocket after a few months.

Look into your home equity for help. Even with rates going up, home equity lines of credit are still lower than the rates on most credit cards. You may even be able to deduct the interest on your income taxes.

I would suggest taking out a home equity loan, instead of a home equity line of credit. You will receive a lump sum and make fixed payments for a fixed period of time. And the best advantage is that the rate is fixed. It may be a little higher than with a line of credit, but it will not go up.

Take a close look at changing your spending habits. Diverting your debt to another place does not get rid of it. If you keep using your cards, you will just be getting further in debt. Pay them off, cut them off and go on with your life.

Martin Lukac, represents, #1 Loans USA(http://www.1LoansUSA.com), a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. For mortgage rates please visit http://www.RateEmpire.com

Article Source: http://EzineArticles.com/?expert=Martin_Lukac

Back to the Articles

Yes, low APR credit cards are on the rise. Many credit cards are competing for your business to give you the best and lowest rates available today. There are so many credit cards from you to choose from that they are doing all kinds of things to get your attention including lowering their interest rate and giving you no annual fees.

Why is this happening? Because there are so many credit card companies. They all want your business and this is an attractive incentive to get you to apply and own one of their credit cards. If you choose a low APR credit card over one with 19.99 percent you are sure to go with the lower APR.

The only problem is that sometime these 0% and low APR credit cards are only promotional ways to get you to apply and then later your interest rate will rise. Many credit card companies have low APR credit cards for a certain amount of time such as 3 months, 6 months and some up to one year. You will have to compare to find out which one keeps the lower APR after the promotional period to ensure you are getting the best deal around.

No matter what the reason low APR credit cards are here to stay as long as the companies are competing for your business. Just remember to compare everything they offer besides the lower interest rate. You may find that several credit card companies are now offering other wonderful incentives for you to apply with them such as reward programs.

No matter which company you choose, you will enjoy the low APR credit cards even if it is only for a limited time. You will be able to save money on your purchases because you will not have to pay any interest until the promotional period is over. Just be sure your balance is very low when the interest rate kicks in and you will be fine.