NOW is the Time to Take Advantage of Low Interest Rates
October 8, 2008 by Miranda Marquit
Filed under Finance
The big financial news this morning is that the Fed has cut rates to 1.5%. This is part of a global effort to cut rates by 50 basis points, made by central banks in several other countries. The plan is to try and free up the credit markets and get cash moving around the world.
For those of you struggling with credit card debt, you have a great opportunity.
With interest rates dropping, your credit card interest rate is likely to drop as well. This means that more of your payment will go to the principal. It’s the perfect time to aggressively pay down some of your credit card debt.
image credit: sxc.hu
Your credit card rates may only drop if you’ve been a customer in good standing. If you have late or missed payments then the credit card companies may still keep high rates. Now is the time to get your finances in order so you can take advantage of lower rates!
Good point, FFB. However, some will drop rates from 29% to 25% or 21% if you have been showing progress. And if you don’t see a drop, it doesn’t hurt to call the card company and ask for one.
I like your assessment. If you’ve been waiting to buy a car, or get some other type of loan, now is the time to do it — if you can get a bank to lend you money.