Latest news with #debtRelief
Yahoo
4 days ago
- Business
- Yahoo
How to transfer your credit card balance
If you have outstanding credit card debt, high interest charges can make it difficult to regain control of your finances — especially given today's average rates of over 21%. A balance transfer credit card with an introductory 0% APR is a helpful tool to get back on track. Learn how to transfer your credit card balances to save money and pay off debt faster. A balance transfer is as simple as transferring your balance from one credit card to another. Generally, the purpose of a balance transfer is to help you save with a lower interest rate, since balance transfer credit cards offer special introductory APR periods. APR is the annual percentage rate, or your card's interest rate annualized. Throughout the intro period, you'll get a 0% APR promotional rate on your transferred balance. For example, the Chase Freedom Unlimited® may be best known for its cash-back rewards, but it also offers 0% APR for 15 months after account opening on both balance transfers and new purchases. After that, the card's ongoing variable APR kicks in — but the introductory offer gives you time to pay down your balance without taking on interest charges. At the end of the promotional period, the card's regular variable APR will apply to any outstanding balance, which is why it's important to use the intro period to pay off as much of your debt as you you've decided to pay down debt using a balance transfer, take these steps to get started: There are many balance transfer credit cards available. To find the right one for you, consider the following factors: 0% intro APR period: Promotional APR offers can last anywhere from six to 21 months. The longer that introductory rate lasts, the more time you have to pay down your debt without interest. Approval: Many balance transfer cards require good credit to qualify. Check your credit score and see if you prequalify for your choice card before you apply. Balance transfer fee: A balance transfer fee may apply to the amount you transfer to the new card. It's usually 3% to 5% of the transfer you've narrowed down your options, review each card's terms and conditions. There may be restrictions on how much time you have to make the transfer or on fee charges. For example, some cards require you to make your transfer within the first 60 days of account opening to qualify for the 0% APR. Others may charge a lower balance transfer fee for transfers made within the first four months, then increase the fee for any transfers after that. Read your card's terms before applying to avoid any unexpected fees or surprises later. Once you've found the right card for you, you can complete the credit card application. Prepare to provide personal information like your birth date, mailing address, income, and Social Security number. You may also be asked for a copy of your driver's license or other government-issued ID. When you apply for a new credit card, the issuer will make a hard inquiry on your credit report, which can have a temporary negative effect on your credit score. Though the impact is minimal, it's important to apply for a card you're confident you'll qualify for so you don't take on multiple hard inquiries over a short time period. In most cases, you'll receive a decision right away. If you're denied, the credit card company will send you a letter explaining why through the mail. After opening a new account, transfer your existing balance to the new card. In some cases, you may be able to request your balance transfer during the application process. Other issuers will have an online process for making the transfer after approval or require you to call and request a balance transfer by phone. You'll need information about your existing credit card account number and balance information to make your request. Continue to make at least the minimum payment on your old card until you receive confirmation that the credit card balance has been paid in full. Otherwise, you risk missing a payment and incurring late fees and damage to your credit score. The timeline on your 0% APR introductory period typically starts after approval. As you start to pay down your debt after transferring your balance, make note of the end of the promotional period and when the regular APR starts. To maximize the effectiveness of your balance transfer, aim to pay off the entire balance in full by the end of the intro period; otherwise, you'll once again start to accrue high interest charges on the remaining those with high-interest credit card debt, balance transfers can be appealing for three reasons: Many of today's top balance transfer credit cards have intro periods ranging from 12 to 21 months — giving you more than a year to pay down your debt with 0% APR. You'll save money and pay off your balance more quickly since your entire payment goes toward the principal. If you have multiple cards with balances, it can get confusing to keep up with multiple due dates and balances. You can use a balance transfer card to move the balances of multiple cards to the new one and consolidate your debt to a single card with one monthly due date. Some rewards credit cards offer 0% APR balance transfers. These cards may have a slightly shorter intro period (usually around 12 to 15 months) than other options with no rewards. But they can be useful long-term to save money on your spending even after the intro period ends. The Chase Freedom Unlimited, Blue Cash Everyday® from American Express, and Capital One Quicksilver Cash Rewards Credit Card are all examples of great cash-back cards with solid 0% intro periods for balance transfers. However, make sure you have a budget and can avoid overspending before you choose one of these cards. If rewards and benefits could lead you to spending more than you can afford and taking on debt balances again later on, this may not be the best option. Although transferring credit card balances to another, lower-interest card can be an effective way to save money, there are some drawbacks to consider: It's not free to transfer your balance to another card; credit card issuers usually charge balance transfer fees ranging from 3% to 5% of the transfer amount. For instance, while the Wells Fargo Reflect® Card offers an exceptionally long 21 months of 0% APR on balance transfers, it also charges 5% on the transfer amount. If you transferred a $1,000 balance to that new card, that means your fee would be $50. Compare that to a card like the Citi Double Cash® Card which has a balance transfer fee of 3% as long as you make your transfer within four months of account opening — your total cost would only increase by $30. The higher your debt balance is, the more this fee can make a difference. However, don't let fees deter you from balance transfers. These 3% or even 5% fees are much less than any high-interest credit card APR, and you can still save much more money if you can pay down your balance over the intro period. Moving your balance to a new card can help jumpstart your debt payoff, but it doesn't solve the root cause of your debt. Unless you address the issues that caused you to accumulate debt in the first place, you may just worsen the problem since you'll have a new credit card and credit limit to use. Before you apply for any balance transfer card, make sure you have a plan to pay as much as possible toward the balance each month and a budget to avoid overspending again in the future. To qualify for a balance transfer credit card that offers 0% APR for a specific period, you'll generally need good to excellent credit. If your credit score isn't in that range, you may not be eligible for a balance transfer card. You'll also need enough available credit to transfer your balance once you open the card. Balance transfers do count toward your overall credit limit, so the credit line you get approved for can make a big difference. Otherwise, you won't be able to move all of your debt. A personal loan is another debt consolidation option that can potentially help you lower your interest rate and monthly payments on your debt. Compare our top personal loan picks here. Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
CBC
03-06-2025
- Business
- CBC
Yellowknife long-term care home seeking gov't reimbursement for 2023 evacuation costs
Social Sharing A Yellowknife seniors' care home is still in debt from the 2023 wildfire evacuation and says the N.W.T. government should help pay it off. AVENS, a not-for-profit organization that provides independent living and long-term care for seniors, moved 57 residents from its facility during the evacuation, racking up a bill of more than $1.3 million. Around $900,000 of those costs have been reimbursed by the federal government, and in a news release last week AVENS said it wants the territory to pay the rest. AVENS CEO Daryl Dolynny says the debt has forced the organization to take out a second mortgage on one of its properties in order to keep some cashflow. "This has been gravely overlooked for far too long," said Dolynny. Dolynny said that the organization was severely short-staffed during the evacuation. About a quarter of the staff was on hand to find space for its clients — plus the extra clients the territory put in its care — in Edmonton, without guidance from the territory. He said the territory placed evacuees from Hay River and Fort Smith in AVENS' care days before Yellowknife's evacuation, and up until the day of. "To be in a position where we actually acquired other seniors and elders with severe cases of dementia… We did the right thing and we would do it again. All we're asking is, pay for the fair and reasonable cost that it took us to manage this," Dolynny said. Being short-staffed meant the organization developed an incentive program to pay staff members extra during the evacuation, according to Dolynny. AVENS's news release also notes that it provides care under contracts with Northwest Territories Health and Social Services Authority (NTHSSA), and that those contracts are only for providing services at the AVENS facility in Yellowknife. It says the lack of guidance during the evacuation made an already complicated situation even more so. NTHSSA says costs can't be covered In an email, NTHSSA spokesperson Krystal Pidborochynski said the costs AVENS is trying to claim doesn't meet the standard for reimbursement under the territorial disaster assistance policy. "While incremental staffing costs such as overtime or hiring additional staff may qualify as disaster-related expenses, incentive payments are ineligible as a disaster-related expense," Pidborochynski said. after-action review of the 2023 wildfire emergency is disappointing. NTHSSA said that ensuring claims align with territorial disaster assistance policy is "essential for maximizing federal cost-sharing and ensuring compliance with eligibility requirements."
News.com.au
18-05-2025
- Business
- News.com.au
Kochie: How to ‘supersize' your May rate cut
What would you do with an extra $1200? Plan a weekend getaway? Pay off some debt or some big bills? That's roughly what an average borrower with a loan of $666,000* will have back in their pocket over the course of a year if the Reserve Bank decides to drop the cash rate by 0.25 per cent on the 20th — and banks decide to pass this on to borrowers. It's double that if they issue a so-called 'super-sized' 0.50 per cent rate cut that's been floated as a possibility by some senior economists. It's much needed relief for homeowners buckling under the pressure of expensive loans and high interest rates. I asked the experts at Compare the Market to crunch some numbers. The average borrower* on an interest rate of 6 per cent is paying roughly $1,500 more a month (that's about $18,000 more a year) compared to what they would have been paying when some of the most attractive rates in the market were around 2 per cent during the pandemic. Unliveable city cottage sold sight unseen for $1.5m And remember that's $18,000 after tax dollars. No wonder borrowers are feeling the cost of living crisis. While it's unlikely interest rates will ever be that low again, they really shouldn't be as high as they are now. Australian homeowners have borne the brunt of the war against inflation. It's high time we had some relief. When those well-deserved rate cuts do start to come through, here are my top tips to stretch every dollar a bit further. 1. Make every dollar count Homeowners may be able to turn their cash rate cut into a five-digit saving over the life of their loan by directing the savings into an offset account. Compare the Market did the numbers and someone with a $600,000, 30-year loan could save $58,077 over the life of their loan by diverting their $97 in savings from a 0.25 per cent rate cut into an offset account each month. Offset accounts offer a great incentive to save. And unlike regular savings accounts, you won't pay tax on the interest you offset. You'll also have flexibility to withdraw money from the offset account should you ever need to. Just make sure you're happy to pay any additional fees your bank might charge for these features. 2. Work that equity If you've owned your home for more than five years, chances are, it's gone up in value. National property values were up 39 per cent in March 2025, compared to five years ago, and 68 per cent over the decade, according to CoreLogic's Hedonic Home Value Index. Homeowners in Adelaide and Brisbane have experienced the biggest increase, up 94 per cent and around 91 per cent, respectively, in that 10-year period. What that potentially means, is that a lot of people that are lucky enough to own a home, could have a fair bit of equity, assuming they haven't taken on more debt. As an added bonus, they could be saving on their home loan with a cheaper rate. Borrowers with a lower loan to value ratio (LVR) are typically seen as a lower risk, which banks love. Often there are great discounts for people with LVRs of 60 per cent to 70 per cent. It's worth doing a quick comparison to see if you could be on a better rate. 3. Say you'll walk Your bank may have passed on a rate cut but that doesn't necessarily mean you're getting a good deal. If you haven't refinanced for a few years, now could be a great time to shop around and look for a better rate. Mortgage brokers can help do some of the heavy lifting for you, calling lenders to negotiate discounts on your behalf. Remember, if you have a good track record for making repayments on time, and have a healthy loan to value ratio, banks want your business! If your lender can't beat the new rates on the market, it may be time to walk. *Average loan size of $666,000 published by the Australian Bureau of Statistics in December 2024
Yahoo
16-05-2025
- Business
- Yahoo
Pros and cons of a balance transfer
A balance transfer credit card can help you pay off your debt faster and save money on interest, but it may not be the right move for everyone. Balance transfer credit cards offer advantages, including consolidating multiple payments, lowering your total interest paid and paying off your debt faster. It's important to carefully assess your financial situation and make a plan before pursuing a balance transfer credit card. When your monthly credit card payments are barely scratching the surface of your overall balance, it can make your debt feel overwhelming. The good news is that you might not have to keep battling with a steep credit card bill and a balance that won't budge. Instead, you could benefit from a balance transfer credit card if your credit is still in good shape. The low or zero percent introductory annual percentage rate (APR) could help you pay off your credit card balance faster, save you money on interest and even improve your credit score. But despite all the benefits of a balance transfer, it still may not be the right move for you once you consider the downsides, like the balance transfer fee. We've interviewed some experts to talk about the pros and cons of a balance transfer, so you can decide whether a balance transfer is the right move for you. If you are eligible, you can stand to gain a lot from a balance transfer. Here's a rundown of the biggest advantages: The most important reason to pursue a balance transfer credit card is to take advantage of a low or 0 percent introductory APR offer. By transferring your debt to this new card, you start saving on interest immediately. Every payment you make goes directly toward reducing the amount you owe, which makes the balance transfer credit card a valuable tool for becoming debt-free. When more of your monthly payment goes towards the principal, you'll pay off your debt faster and pay less interest overall. 'Credit card interest is very high at present, with rates from 18 percent to as high as 27 percent. Banks are allowed to charge high interest because credit card charges are unsecured loans. A balance transfer allows consumers to temporarily have a lower or no interest charge while they pay down debt.' Depending on the credit limit you're granted, your new credit card may allow you to transfer multiple credit card debt balances onto one card. In turn, this streamlines your finances by allowing you to consolidate multiple payments. If you've been struggling to manage several due dates and payment amounts, this is extremely helpful. 'If you are dealing with multiple credit card debts, transferring all balances onto one card simplifies your financial management. You'll now deal with just one monthly payment, making it easier to track and less likely for you to miss due dates,' Sudhir Khatwani, founder of The Money Mongers, says. The best balance transfer credit card you choose could offer more than a 0 percent intro balance transfer APR. It may also offer better overall benefits — possibly including cash back, rewards, discounts and more. 'New generations of cardholders are used to … moving from one service to another, like streaming, cable and cell phone providers. They may also feel they are not getting the full benefits or services from an existing issuer. Changing cards and transferring balances can often yield better rewards — for example, an airline card that rewards airfare miles,' Martini adds. Dennis Shirshikov, former head of growth for and a finance professor at the City University of New York, notes that 'a side benefit of transferring a balance to the right card is improving your credit score by reducing your credit utilization ratio.' Your credit utilization ratio measures the amount of credit you are using versus the amount of credit that is available to you. It is typically expressed as a percentage and is calculated by dividing the total amount you owe in revolving credit accounts by the total credit limits of those accounts. When your credit utilization is high, which means you are using a large portion of your available credit, it can negatively impact your credit score. Opening a balance transfer credit card will lower your credit utilization ratio because you'll have more available credit and will be paying down your balance without adding interest to it. On the other hand, balance transfer credit cards have their downsides. If you find that the disadvantages outweigh the pros, then you may want to consider balance transfer alternatives. Here are several caveats to watch out for: To be eligible for the best balance transfer credit card offers, you usually need to have good or excellent credit. While there are options for balance transfer cards if you have bad credit, they are typically lacking compared to the best cards out there. If your score is in a lower range, you may not qualify for a card with a 0 percent intro APR offer, and if you do, it might not have the best terms. Instead, a debt management plan might offer some relief. These plans are offered by credit counseling agencies and provide benefits like lower interest rates and a single monthly payment, which helps you pay off your debt faster without requiring a minimum credit score. Depending on the terms of the card you're considering and its current promotion, you may have to pay a balance transfer fee. This fee is usually 3 percent to 5 percent of the total transfer amount and may be subject to minimum fees. For example, if you transfer a $1,000 balance to a balance transfer card with a 5 percent transfer fee, the total amount you will need to pay down is $1,050. Negotiating or avoiding balance transfer fees can be challenging, but there are credit cards available that don't charge balance transfer fees. In addition to a handful of balance transfer cards offered by major issuers, some credit unions also offer cards with no balance transfer fees. Keep in mind: A balance transfer fee (3-5% of the amount transferred) is due upfront. Factor this into your debt payoff plan — it could mean the difference between saving money or breaking even. The truth is, with a balance transfer card, you're simply moving money around without necessarily improving your debt problem. In fact, if you don't practice good financial spending and repayment habits, you could make the problem worse. 'Know that a credit transfer is not free money to extend paying off your open balance. It's only a[n] … opportunity to save money and pay off a balance,' cautions Martini. Having a new card may entice you to charge even more, especially if your new balance transfer card also offers a 0 percent intro APR on purchases. 'Without discipline and a plan, a balance transfer can tempt you to accrue more debt, exacerbating your financial situation,' warns Andrew Latham, a certified financial planner. Take control of your spending by creating a realistic budget that tracks your income and expenses responsibly. Avoid impulse purchases and try to pay more than the minimum amount due on your credit cards each month. It is important to remember that 0 percent intro APR offers typically expire 12 to 21 months after opening the card. That provides a limited window of time in which to benefit, but it can also provide a false sense of security. 'It's important to read the fine print, as it varies per [offer],' says Martini. 'Before initiating any balance transfer, understand how long the new issuer is offering you the 0 percent or low interest rate. For the transfer to work in your favor, you must pay off the balance before the end of the introductory rate.' And once the introductory offer ends, the remaining balance could be subject to a higher interest rate than you had before. To ensure you pay off the balance before the intro period ends, make a plan using Bankrate's credit card balance transfer calculator to determine the monthly payment amount that will help you reach your goal. Money tip: Divide your transferred balance by the number of months in the 0% APR period — that's your minimum monthly payment to avoid interest. Better yet, pay 10-15% extra to build a buffer and stay ahead. Each time you sign up for a new credit card, your credit score may drop by up to 10 points — possibly for several months. That's because applying for a new card usually triggers a hard inquiry, which can temporarily lower your credit score. Other factors like using more of your recently freed up available credit or closing your paid off credit card could also lower your credit score. If you're worried about your score dropping, keep in mind that it's temporary. You could also avoid the extra hit to your credit score by creating a payment plan with your credit card company. This looks like automating payments or making smaller, more frequent payments that are easier to manage. If you're planning to apply for a mortgage, auto loan, home equity loan or personal loan in the near future, be cautious about getting a balance transfer credit card now. As mentioned above, applying for such a card might temporarily decrease your credit score by adding a hard inquiry to your credit profile. This could make it harder to get approved for the loan you want or secure a low interest rate. In this case, it may be helpful to stick with your current credit card but make larger or extra payments regularly to reduce your debt faster. Alternatively, you might consider using a portion of your personal or home equity loan to consolidate and pay off your higher-interest credit card debt. 'Personal loans are available, often easy to get and usually have a much lower interest rate than any credit card,' suggests Martini. Getting a balance transfer isn't a one-size-fits-all solution for dealing with credit card debt. A balance transfer could be a bad idea in the wrong situation. But if you're experiencing these circumstances, a balance transfer card might be a good idea: You've resolved the issues that contributed to your credit card debt. You thoroughly understand your budget and know exactly how much you can contribute to paying off your debt each month. You're not applying for a major loan like a mortgage or car loan anytime soon. You still have a healthy credit score. You don't foresee any financial disruptions for the next 12 to 21 months. Your credit card debt doesn't feel hopeless, it's just challenging to deal with. 'A good candidate for a balance transfer card is someone with a good to excellent credit score who is eligible for cards with the best terms and rates,' Latham says. 'They are also disciplined and committed to paying off their balance within the promotional period, and they view the balance transfer as a tool to manage debt — not an excuse to incur more.' If that's not you, you may want to reconsider a balance transfer credit card, even if the 0 percent introductory offer seems like an opportunity you can't pass up. Instead, you may want to evaluate your finances and address the root of your credit card debt or try other options for tackling your debt. While a 0 percent APR offer can help you make great strides toward paying off credit card debt, it can also come with some downsides, like temporarily lowering your credit score. Before pursuing a balance transfer credit card, carefully assess your financial situation — including your ability to repay and qualify for the new card. Check out Bankrate's Cardmatch™ tool to match with balance transfer cards that fit your credit profile and financial goals.
