How to Avoid Using a High Cost Credit Card this Holiday SeasonComment November 19, 2014 by Triangle Credit Union
According to the most recent interest rate survey by Bankrate.com, the national average annual percentage rate (APR) for variable credit cards is 15.68%. If, like me, you had planned on buying gifts this season with a credit card, consider instead
Holiday Cash is a special personal loan that offers you the option to borrow up to $20,000 at a rate as low as 6.99% APR*. Besides a much lower APR, Holiday Cash differs from a credit card by offering a fixed rate, term, and payment schedule; ideal to help you budget for your Christmas giving. Upon approval, disbursement of the funds to your checking account happens immediately after closing. So, you can utilize your debit card and even take advantage of Purchase Rewards to maximize your giving.
Let’s take a look at the savings. I borrowed $5,000 this year, budgeting $1,000 for Christmas and $4,000 for debt consolidation. Given a 36 month term, let’s compare how much I will save with a Holiday Cash loan over an “average” national credit card. Using Triangle’s personal loan calculator, I have entered in the amount, term, and annual percentage rate for both Holiday Cash and the “average” credit card.
Assuming, no additional fees and no changes to the variable rate, which with the credit card is not a safe assumption to make, I would save at least $20.64 a month and $743.04 over the lifetime of the loan using Holiday Cash over the “average” credit card.
I applied for my Holiday Cash loan online and was very impressed with the quick turnaround. With my budget taken care of, now all I have to do is figure out what I’m going to get everyone!