Tag Archives: interest rate

Deleveraging the U.S. Economy

The Chinese government, the biggest buyer of U.S. debt, expressed concern about American deficits and its impact on U.S. Treasury obligations – a budget that will raise the national deficit to nearly $2 trillion dollars. That’s $2,000,000,000,000.

Bernanke views this intervention strategy as critical and necessary to avert a deeper downturn. But as you know, spending money you don’t have can come with it some dire consequences.

This economic jump start strategy of spending America out of this downturn will need to be repaid one day, hopefully from economic growth and fiscal restraint. But deficits generally spawn higher inflation, higher interest rates and a weaker economy.

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If it seems Too Good to be True… It Probably Is

Usually a credit card issuer will apply a balance transfer fee when you transfer a balance from one card to another under their ‘Special Offers.’ Beware, these fees are often a percentage of the total balance or come with other conditions such as eligibility requirements, no grace period, conditional based on monthly payments, etc. Be certain to read the fine print and understand the terms before falling for one of their many marketing ploys.

Once you fully understand the terms, make sure you factor in any fees to the interest rate in order to accurately compare APRs.

If you violate any of the conditions, they may just jack your rate up to an amount higher than then the card you transferred from.

The Right Card for You

The Financial Consumer Agency of Canada (FCAC) has established The Money Belt Tool to help consumers compare credit cards and find the one that suits your needs.

Preferences include:

– Students Cards

– Rewards Programs

– No Annual Fees

– Low Interest Rates