Credit card debt means high interest

August 6, 2015

Indispensable in the wallets of many holidaymakers: the credit card. Even if it is just to reserve your hotel. You can hardly escape the credit card online either.

Paying with credit card is incredibly easy. It works all over the world. But is it perhaps too easy? Many people don't know what their credit costs in interest. Therefore, more about this expensive form of borrowing money and the alternatives.

Many Dutch with credit card

60 percent of the Dutch have a credit card. That is not surprising, the credit card is a useful means of payment. Certainly because thanks to this card you can buy something now and only have to pay later. This way you can always enjoy shopping. Even if you have no money in your account for a while.

Credit card costs

But the sun only rises for nothing. A credit card is a form of borrowing money and not free. You often pay a certain amount for the use of your credit card anyway. But what can be particularly expensive is the interest costs.

Of course you do not immediately pay interest when you buy something with your credit card. Usually you have a certain number of days of deferment of payment or a fixed payment moment. If you pay back your purchases within the set period, then nothing is wrong. If you are late, you will pay interest.

Borrow interest credit card money

The interest you have to pay on your credit card is often very high. At the large Dutch banks you pay between 12 and 14 percent interest. This way your credit card debt can quickly accumulate!

Alternative expensive credit

A month left at the end of your money? An alternative to credit card credit is revolving credit. With a revolving credit you also get extra money. You can record this for free if you need it. And pay back without penalty if you are more generous financially.

An additional big advantage: you can take out a revolving credit from an interest rate of 4.5 percent. That saves almost 10 percent with the credit card credit. Calculate your advantage, I would say!

Transfer expensive loan

Do you want to get rid of your expensive credit card debt? Even then, taking out a loan is a cheaper alternative. Paying off debt by borrowing money sounds like closing one gap with another. But you will be surprised how much money you can save like this!

It is wise to be well informed before you borrow to pay off your debts. At abdallahka.com we like to think along with you. Request a free quote right away . We are happy to tell you about the options that suit your personal situation.