When you have credit card debt, you know how painful it is. It’s the most expensive type of debt you can have, and your credit card companies are getting rich and fat just as they hit you with high interest rates.
Wouldn’t it be great to turn the tables? Well a lot of people are now. More and more Americans are simply paying off their credit card balances, and that is making credit card companies like Capital One, Citibank, and Chase really nervous. That’s because their entire business model is based on chiseling you out.
“Americans are paying off their credit card debt at levels not seen in years. This is good news for everyone but the credit card issuers, ”reports The Wall Street Journal. “Many card issuers are relying on the growing card usage and rising balances for their earnings, wondering if the pandemic trends will turn into a long-term shift.”
Wouldn’t it be nice to get some revenge and break your credit card company into a sweat for a change? Now you can and it’s easier than you think.
Credit cards charge you hard interest rates that routinely rise above 20% APR. But if you owe your credit card company $ 50,000 or less, a website called AmOne will offer you a low-interest loan that you can use to settle all of your balances.
The advantage? You have to pay an invoice every month. And because personal loans have significantly lower interest rates (AmOne rates start at 3.49% APR), you become debt free The much faster.
Plus: No credit card payments for you this month!
You get terribly nervous
Credit card companies are sweating these days as Americans’ credit card balances are falling. They are down a whopping $ 49 billion in the first quarter of 2021 compared to the previous quarter, according to data released by the New York Fed last week.
Overall, credit card balances are down almost 15% year over year, according to credit reporting agency Equifax.
Large credit card issuers such as Capital One, Discover, and Synchrony (the largest business credit card issuer) had balances down 17%, 9%, and 7% year over year, these companies reported.
Why is this happening?
When the COVID-19 pandemic broke out, banks expected a spike in defaults, forcing borrowers to rely on their credit cards to make ends meet. The Wall Street Journal reported. But then the government stepped in with economic checks and expanded unemployment benefits. It enabled borrowers to suspend payments on mortgages and student loans. So there never was this flood of defaults.
Now, “it appears that many households are working to reduce their revolving debt balances, and this is happening across the board,” the Fed wrote.
How to beat your credit card company
If you are interested in a personal loan to wipe out your credit card balance, having a good credit score helps.
A free website called Credit Sesame makes it easy for you to get your creditworthiness on track to meet your goals. Within two minutes, you’ll have access to your credit history, all debtor accounts, and a handful of personalized tips for improving your score. You can even spot bugs that are holding you back (every fifth report has one).
With AmOne, you don’t need a perfect credit score to get a loan – and comparing your options doesn’t affect your score. Additionally, AmOne keeps your information confidential and secure, which is why after 20 years in business it probably still has an A + rating with the Better Business Bureau.
It takes less than a minute and 11 questions to see which loans you qualify for – you don’t even have to enter your Social Security number. You need to give AmOne a real phone number to qualify, but don’t worry – they won’t spam you with phone calls.
Stop shoveling money into high yield credit card payments. Laugh along with the rest of us as credit card companies express deep concern over profit calls and sweat over their plummeting profits.
Revenge is sweet.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He paid off all of his credit cards and wow, it felt good.