Taming Credit Card Debt

Credit card debt is a common financial challenge for many Americans. As of 2024, the average credit card debt per person in the U.S. is approximately $6,380. With interest rates on credit cards averaging around 20.27%, managing multiple high-rate credit card balances can be overwhelming and costly.

Consolidating high-rate credit card debt onto a lower-rate credit card, such as the America’s Credit Union Platinum Visa, offers several benefits:

1. Lower Interest Rates: The America’s Credit Union Platinum Visa offers a competitive APR* ranging from 10.04% to 18.00%, significantly lower than the national average. This can result in substantial interest savings over time, allowing more of your payments to go towards reducing the principal balance.
2. Simplified Payments: Managing multiple credit card payments can be confusing and increase the risk of missed payments. Consolidating your debt onto a single card simplifies your financial management, making it easier to keep track of due dates and payment amounts.
3. Potential for Improved Credit Score: By consolidating your debt and making consistent, on-time payments, you can improve your credit utilization ratio and payment history, both of which are key factors in your credit score.
4. Financial Peace of Mind: Lower interest rates and simplified payments can reduce financial stress, providing peace of mind and a clearer path to becoming debt-free.

Comparison Example:

If you pay $300 per month, here’s how much you would save and how long it would take to pay off the consolidated debt of $6,380 with different APR rates, including the original rate of 20.27%:

• At 20.27% APR (Original Rate):
  • Total Interest Paid: $1,591.99
  • Time to Pay Off: 27 months

ACU Platinum (depending on your credit score your rate would be between 10.04%APR and 18.00%APY)

• At 10.04% APR:
  • Total Interest Paid: $675.08
  • Savings: $916.91
  • Time to Pay Off: 24 months
• At 18.00% APR:
  • Total Interest Paid: $1,361.70
  • Savings: $230.29
  • Time to Pay Off: 26 months

By consolidating your credit card debt to a lower APR, you can achieve significant savings on interest payments and pay off your debt more efficiently, even with a lower monthly payment of $300. This approach can help you become debt-free more quickly while saving money in the long run.

If you have any questions or need further assistance, feel free to ask!

*APR=Annual Percentage Rate. Your APR for purchases is 10.04% – 18.00% based on your creditworthiness and will vary with the market based on the Prime Rate. This transaction is subject to credit approval.