Repair Your Credit | Reduce the APR Bulge (Pt. 5)

You can cut your dependence on borrowing

Welcome back. CLICK HERE if you missed part four of this five-part article. Let’s close out this chapter of the “Repair Your Credit” E-book by looking at a few more ways that you can cut down on high-interest revolving credit. The fewer credit cards and installment loans who have to depend upon, the better for your financial future.

Retirement funds

If you currently possess a 401(k) retirement account, you may be able to borrow a loan against it if you absolutely need money. Keep in mind that this should be a last resort for debt consolidation, as your 401(k) is intended to be a part of your long-term financial goals.

The nice thing about these types of loans is that you are paying interest to yourself, not the bank. Be aware, however, that if you quit your job that is providing you with the 401(k), you’ll have to pay the debt in full when you leave. Hardly the kind of thing you want to have to worry about during a recession, is it. Perhaps you shouldn’t borrow from your 401(k). Forget I mentioned it, or at least be sure you won’t be creating undue financial stress for yourself.

Your local bank or credit union

Short term loans and installment loans obtained through portals like Personal Money Store Credit unions offer immediacy and interest rates much lower than you would expect for quick payday loans. However, if you don’t need a bad credit cash advance - i.e., your credit is still decent and you have identified your need for help before defaulting on your accounts - you may be able to apply for and be approved for a loan from your bank or credit union. Since most consumer credit card accounts carry interest rates around 20 percent, you may be able to lower your monthly payment and pay your debt off quicker with such a loan, which may only carry a 10 percent rate. ... click here to read the rest of the article titled "Repair Your Credit | Reduce the APR Bulge (Pt. 5)"