Has your credit card spending got out of hand? Know that there is a solution to no longer pay interest in a vacuum. Unfortunately, when we are faced with a substantial debt on the credit card, interest expense are 12%. An overdraft of for example 5,000.- will therefore be billed to you 600.- per year!
How to do ?
The solution is very simple and is to transfer your debt. This is currently billed at 12% while it can be billed at 3.9%. So significant savings
To make the right decision, simply compare the interest rates! Why pay more when the result is the same? After balancing your card, you will benefit from an advantageous repayment plan with which you find a balance in your budget.
Do you have an annoying tendency to use your credit card too often? Destroy there or place there in an unassailable place. Only take it out when you have no other way to settle a payment.
Is personal financing better than an overdraft on a credit card?
Not really… in both cases it is a debt. However, personal financing has the advantage of benefiting from a lower rate and a predefined fixed amortization. The commitment being stronger, it will facilitate the end of the debts by a regular repayment and defined in advance according to your budget.
In Switzerland there is no real reason to use a credit card since you can pay with a debit card everywhere. The credit card may be of use to you abroad or for an online purchase that does not offer other payment methods (which is quite rare today).
Situation announced to the credit bureau
Another important point, if you never pay off the debit balance on your credit card and have delays in paying the minimum required, the card issuer is obligated to report this situation. at the credit bureau and you will thus be listed as a bad payer.
Ideally, we recommend that our customers purchase a prepaid credit card which will cost significantly less year round. It will offer the same advantages as a traditional card. As for indebtedness with private credit, we only offer this when it allows a smart or necessary investment.
Is it a good idea to pay off my credit card with private financing?
If you want to live debt free and not pay interest in a vacuum, the answer is yes! With Lica, we approach the question from the angle of deleveraging by first taking into account your current budget. Then we compare the market offers before submitting the different solutions to you. As soon as you have made your decision, we take care of settling your credit card and managing all administrative operations. So you don't have to do anything!
At Lica we are revolutionizing the world of financing by offering you a cashback system of up to 5,000.- for each contract concluded. Why then pay more elsewhere?