Important Tips On Interest Rates From A 4 Pillars Debt Consultant

One of the many services provided by a 4 Pillars debt consultant is education about financial planning and management. This is a critical aspect of debt management for people in the Victoria area, helping to provide a strong foundation for rebuilding credit and successfully managing finances in the future.

Interest rates are not something that many people focus on when choosing loans, making large purchases, or selecting credit cards. However, interest is a significant factor for Victoria residents who are in debt and struggling to make more than minimum payments.

Interest Rates and Credit Cards

It is not uncommon for a 4 Pillars debt consultant to discover wildly different interest rates on credit cards of clients. Higher interest rates result in a greater snowballing of the debt over time unless the client is able to pay off a significant portion of the principle.

This is an important factor to consider when tackling debt. Paying off high interest rate cards as quickly as possible while maintaining at least minimum payments on low interest cards helps to reduce debt levels faster.

Moving balances from high interest rate cards to low interest rate cards can be helpful. Unfortunately, the individual’s credit score is considered with this type of transaction. Any missed or partial payments can dramatically reduce the score, limiting the possibilities for this strategy.

Ideally, working with a 4 Pillars debt consultant before missed payments or partial payments are a factor is the best option. The debt consultant works with the client to establish a debt repayment plan that is customized to their needs and financial situation.