Credit Card Chaos - A Home "Refi" Can Help

Updated: March 01, 2010

A twenty thousand dollar amount on a credit card with a 15% interest rate can cost you as much as $325 a month in minimum payments (over a period of 10 years) with some credit cards having interest rates as high as 20% which can increase that minimum payment even more. This is also the minimum payment which means that a fair portion of that monthly payment is going towards interests and it will take even longer to pay off that twenty thousand dollars. Credit card companies will try to keep your favor by offering temporary lower rates and other incentives. These discounts may work well if you have smaller amounts on your credit cards, but if you have ten, fifteen, twenty thousand or more on your credit cards then this is by no means a solid solution.

Are there alternatives out there? The answer is yes, and one increasing popular alternative is a home refinance loan. Refinancing your home can provide the cash that you need to pay off those higher rate credit cards and save you money at the same time. Taking our example from above, the same twenty thousand dollar credit card bill paid off with a lower rate home refinance loan would cost you around $205 a month saving you around $120 a month (on a similar ten year refinance loan).

Featured Research
  • The 2017 CRM Comparison Guide: Q2 Edition

    If you’re in the market for CRM software, we’ve got good news. We’ve updated our CRM comparison guide for Q2. more

  • 2017 Business VoIP Features

    If you’re considering an investment into a new VoIP system (or upgrading an old one), it’s important to understand what features are available and which ones your business will actually need. Especially if you want to keep costs at a minimum. more

  • 10 Reasons Why  Automated Agents  Aren't the Answer

    Automated customer service agents are a tempting option. They never need time off. You don’t have to pay them a salary. They don’t even need a physical workspace. But despite these advantages, they remain a poor substitute for live agents. more

  • Get the ERP Solution You Want in 5 Steps

    An effective Enterprise Resource Planning (ERP) solution is a must-have for any growing business looking to quickly improve the flow and efficiency of various internal processes. more

  • ERP in the Government Sector

    Enterprise Resource Planning (ERP) solutions have helped businesses improve the flow of key internal processes. That said, there’s yet another professional sector that’s benefitted, too … more