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How to Quickly Eliminate Credit Card Debt

Covid-19, or coronavirus, is causing families worldwide to reconsider their financial plans. Because of the uneasy nature of the times, more and more people are turning to debt reconsolidation. And, with the average U.S. credit card debt over $8,000, shoring up your finances has never been more important.  While balance transfer credit cards are a staple of debt reduction, a new option is rapidly gaining popularity. Known as the Upgrade Card, it offers the low rates of a personal loan plus the flexibility of a traditional credit card. What is the Upgrade Card, and should you consider applying to quickly eliminate credit card debt?

The Trouble with Balance Transfer Cards

The recent economic volatility has many Americans considering getting their finances in order. Given that the Covid-19 pandemic has no end in sight, eliminating debt has never made more sense. One of the most popular options for paying off debts is balance transfer credit cards.

Balance transfer credit cards work by providing an introductory interest rate and low fees for conducting transfers. Typically, this special rate is 0% intro APR for between 6 to 18 months. Once this bonus period ends, balance transfer cards offer a “low” APR of around 14% – though some credit union credit cards come with rates below 10%.

While the APR on a balance transfer credit card is significantly lower than interest rates on other types of cards, it is still high. Paying off a balance requires patience and the correct tools for the job, so using a card that charges 14% interest just isn’t practical.

Upgrade the Way You Eliminate Credit Card Debt

Fortunately, Sutton Bank understands the problems that arise from paying off balances via a balance transfer card. The bank, along with fintech pioneers Upgrade, created a new type of credit product. Known as the Upgrade Card, it is a unique approach to paying down balances and eliminating fees of any kind.

Upgrade Card

Credit Line Up to $20,000

Upgrade Card
  • Regular Purchase APR 6.99%-29.99% variable based on creditworthiness and the Prime Rate
  • Annual Fee None
  • Credit Needed Excellent , Good , Fair
  • Processing Network Visa
Best Benefits
  • Choose the Upgrade card with a personal credit line instead of a credit card and enjoy predictable payments on lines from $500-$20,000
  • No Fees – No annual fees and no fees to use your card
  • Quick and easy application – find out if you qualify in minutes
  • Checking your line won’t hurt your credit score
  • Free access to credit monitoring, alerts and features to help you understand your credit
  • Use wherever Visa is accepted. (cannot be used at an ATM)
Rates & Fees
  • Regular Purchase APR: 6.99%-29.99% variable based on creditworthiness and the Prime Rate
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The Upgrade Card combines the purchasing power of a Visa credit card with the excellent rates of a personal bank loan. New accounts get a credit line of up to $20,000, with installment repayment plans of 12, 24, 36, or 60 months. Cardholders can use the Upgrade Card like a credit card or transfer funds over to existing accounts to pay off their high-interest balances.

The beauty of the Upgrade Card is that existing balances are paid off using the credit line, then paid back over a set period – all at a rate significantly lower than any balance transfer credit card. The APR with the Upgrade Card starts as low as 6.99% – almost 8% smaller than the average balance transfer card. This low rate and set payment structure are proven to help individuals pay down their faster and more effectively than with traditional credit card products.

Pay Down Balances Faster – and Cheaper

The following shows how effective Upgrade is versus traditional credit cards. This table shows how much a user pays on a $10,000 balance when making just the monthly minimum payments:

upgrade card benefits

Who Can Benefit Most from the Upgrade Card?

Because of the low-interest rates and set repayment periods, the Upgrade Card is the perfect option for those who struggle to make payments with their current credit cards. Paying down balances using tricks like the snowball or debt avalanche method requires planning and dedication. The Upgrade Card, on the other hand, requires cardholders to make their monthly minimum payment. That’s it.

No Fees Means No Worries

Even better, the Upgrade Card charges no fees of any kind. That means NO

  • Annual fees
  • Monthly fees
  • Late fees
  • Penalty APR
  • Over-the-limit fees

Have a Balance You Want to Pay Down? What’s Your Best Option?

Many individuals enjoy the introductory bonuses that come from balance transfer cards. After all, 0% intro APR is very enticing. Once that intro period ends, however, you’re left with interest rates in the teens. Still, for those who have a smaller balance to pay down a balance transfer credit card makes perfect sense.

If you are like the average American household, however, six months of 0% APR won’t help you much. That’s because the average American family has over $8,000 of credit card debt, according to Debt.org. For those with substantial debts, the Upgrade Card provides a simple, efficient, and inexpensive way to quickly pay down balances and eliminate credit card debt. And, with no fees, it’s a solution that not only saves you money but won’t cost you anything to get either. Now that’s a win-win!

 

About: Cory
Cory Santos

Cory is BestCards.com's "Jack of all trades" and resident rewards expert, covering all facets of the points game – especially travel, hotels, and airlines. In addition to credit cards, Cory finds that jogging, cats, and memes are essential parts of a balanced day.