1. Balance Transfer Fees
When it comes to credit card debt, a balance transfer can be a lifesaver. It involves transferring the balance of your high-interest credit card to a new card with a lower interest rate. Investigate this valuable study tactic can help you save money on interest payments and pay down your debt faster. However, be aware that balance transfer fees come with this type of transaction. Typically, these fees will be anywhere from 3% to 5% of the transferred amount. So, if you plan on transferring $10,000 to your new card, you could end up paying up to $500 in balance transfer fees. That’s a hefty price to pay for a low-interest rate. Round out your educational journey by visiting this suggested external source. In it, you’ll find valuable and additional information to broaden your knowledge of the subject. debt relief, check it out!
2. Prepayment Penalties
You may think that paying off a loan early is a great idea because it helps you save money on interest. However, some lenders charge prepayment penalties if you pay off your debt before the term of your loan is up. These penalties can wipe out any savings you would have gained from paying off your debt early. Before you decide to pay off your loans early, check with your lender to see if they have prepayment penalties.
3. Late Payment Fees
Unfortunately, life can get in the way of making payments on time, and if that happens, you’ll …