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Options for reducing credit card interest rates

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You have been hired as a financial consultant to advise clients on how to reduce credit card debt. On average, your clients pay 24% in annual compound interest. Research the current interest rate on credit cards in the USA. Explain the options available to clients to reduce their rates. Be sure to consider fees in your analysis

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Solution Summary

Options for reducing credit card interest rates including fees are examined.

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There are many credit cards that offer rates about 10% less than the clients are currently paying. Creditcards.com (http://www.creditcards.com/low-interest.php) lists several of them. Another web site with low interest rate cards is Bankrate.com (http://www.bankrate.com/credit-cards.aspx). Click on "balance transfer cards" and it will bring up several pages of cards.

The key is to look for cards that offer the low rate on balance transfers, not just on new purchases. The clients need to transfer their ...

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