Card Debt Options – Will Switching to a Fixed Rate Credit Card Help?
Let us get one thing straight- A fixed rate credit card does not mean that interest rates charged on the card will remain fixed forever. Rather, the rate is fixed to an index. Once the index changes, the rate will also change. The duration and pattern of change varies as compared to variable interest rate cards. If you are planning to switch to a fixed rate credit card to ensure your interest payments remains stable, chances are high that you will still not succeed.
Whether you should switch to such a card or not depends on the seriousness of the problem. If interest payments are beginning to pinch but you feel that you can manage things better if the interest rate fixed, then you should think of a switch. On the other hand, if you’re finding it difficult to repay your debts on time or if you’re finding it difficult to make ends meet, then a fixed rate will not make any difference. You will continue to face problems irrespective of whether the interest rate is fixed or variable.
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