2016-05-04
Balance Transfers: The Credit-Card Debt-Elimination Method You Can't Afford to Overlook
Credit-card debt is easy to rack up, but paying it off can be a much more formidable undertaking - in large part due to the amount of interest that accrues on credit-card balances, thanks to rates that can range upwards of 20 percent. On average, a $10,000 balance with a monthly payment of $200 will only decrease the principal, or amount you originally borrowed, by about $50 every month. A full three-quarters of your payment goes to interest charges, which means you give away roughly $150 with every remittance. After about a year and half of $200 payments (a total of $3,600), you're still left with a balance of $9,150. With such skewed figures, it's no wonder so many consumers feel trapped by debt. However, there is a way to put an end to interest and to start making real progress toward your financial freedom.
Eliminate Interest
Stopping interest charges is key to making your payments work to your benefit instead of the company to which you send your monthly check - and you can leverage the company's own tactics to make it happen. Many card issuers offer zero-percent introductory rates for a certain length of time on balance transfers. This temporarily eliminates the interest you owe and stops more from accumulating, allowing you to pay off your debt faster. It also gives you a painless way to boost your payments, as the entire $200 payment will then go towards your balance. After a year and a half, that $10,000 debt would be cut to $7,000, a difference of $2,150 compared to paying your regular interest rate.
Different Cards, Different Terms
Transferring your balances can be an effective way of reducing what you owe and the amount of time it will take you to pay it off. However, not all balance transfers are created equal. For instance, the length of time you're given for interest-free payments can vary anywhere from three to 18 months. This can cut into your savings considerably, so make sure you know exactly how long you have before interest starts accruing again. You should also pay attention to any extra expenses. For example, your transferred balance could incur a fee as low as $5 or as much as 5 percent. Along with annual fees, this additional cost can reduce the overall benefits of balance transfers. Do the math to ensure you're still getting a good deal. The ideal card for this debt-elimination method has an 18-month interest-free period with no balance transfer or annual fees. This essentially means that for almost two years, every cent of every payment you make is applied directly to your principal balance. Once the grace period is over, you can transfer any remaining balance to another credit card, repeating the process until your debt is paid in full. However, it is not recommended to constantly open lines of credit as this will negatively affect your credit score.
Maximizing Your Money
Some balance-transfer credit cards offer additional incentives that can amplify your positive financial efforts. The free credit score and monitoring services provided by some issuers can help you keep track of your card balances and view the progress you make on debt elimination over time. In addition, promotions such as cash back on new purchases can put 1-5 percent of what you spend back in your pocket. However, be sure to pay off these balances in full every month so you can avoid paying interest on any new debt.
The Bottom Line
Paying off your credit-card debt is one of the most effective ways to build financial stability. By taking advantage of interest-free balance transfers and cash back on new purchases, you can put yourself ahead of the game and create a cost-effective avenue to debt-free living.
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MoneyLion
MoneyLion Wins “Best Financial Literacy Tool” and “Best API” at Benzinga’s 2022 Global Fintech Awards
MoneyLion’s consumer and enterprise businesses were recognized as winners of Benzinga’s 2022 Global Fintech Awards at this year’s Fintech Deal Day
New York, December 14, 2022-- MoneyLion Inc. (“MoneyLion”) (NYSE: ML), the go-to destination for personalized financial content, products and advice, is proud to announce that it has been named “Best Financial Literacy Tool” at Benzinga’s 2022 Global Fintech Awards. MoneyLion’s enterprise business, Even Financial, was also named as the winner for “Best API.”
MoneyLion and Even Financial were honored alongside other top Fintechs, banks, research companies and more. MoneyLion’s consumer business continues to push financial literacy through innovative and personalized content. With the MoneyLion app, users can view personalized financial content in short-form video format and receive personalized financial product recommendations such as loans, insurance and investing. As MoneyLion’s enterprise offering, Even Financial digitally connects and matches consumers with real-time personalized product recommendations from banks, insurance carriers, and Fintech companies on mobile apps, websites and other digital touchpoints through its financial product search engine and Embedded Finance Marketplace technology. This technology powers both the MoneyLion Marketplace, in the MoneyLion app, as well as more than 1,000 enterprise partners.
“We’re thrilled MoneyLion’s consumer and enterprise businesses were recognized by Benzinga,” said Dee Choubey, Co-Founder and CEO of MoneyLion. “Both awards showcase MoneyLion’s every time you money approach to helping our customers. The financial literacy gap is a huge problem for millions of Americans and we remain committed to reducing its effects through engaging, informative content and key partnerships designed to bring an elevated educational experience to all.”
These awards follow the October announcement of MoneyLion University, where MoneyLion launched its latest initiative aimed at closing the gap in money and financial education across the United States.
“We could not be more pleased with Benzinga’s recognition of our company’s API technology,” stated Phill Rosen, CEO and Founder of Even Financial. “Our technology natively integrates real-time credit decisions and product recommendations from the industry’s largest network of connected financial services providers, offering access and choice to consumers searching for financial products. Our elegant Embedded Finance Marketplace, API and search engine enable any company to add trusted, personalized financial products and services to their business, reaching people when and where they need it.”
Even Financial has been named a listmaker for the Benzinga Global Fintech Awards for the last two years and was a previous award winner. In 2021, Even was selected as a listmaker for Best API and, in 2020, selected as a listmaker for both Best API and Best API Platform. In 2019, Even was awarded the Benzinga Rocky Award.
The annual Benzinga Global Fintech Awards take pride in recognizing and honoring the companies and individuals who are propelling the Fintech and financial services industry forward with the most impressive technology advancements and innovations. A panel of industry experts from a wide range of companies reviewed and judged the nominations. Winners were announced at Benzinga’s Fintech Deal Day on December 8, 2022, where MoneyLion’s Chief Customer Officer Cynthia Kleinbaum spoke on the panel, Expert Growth Hacks For Reaching Underserved Markets.
About MoneyLion MoneyLion is the go-to destination for personalized financial content, products and advice. MoneyLion’s mission is to rewire the financial system to positively change the path of every hard-working American. MoneyLion uses its proprietary data advantage and technology to empower its customers. MoneyLion engages and educates its customers with daily, hyper-personalized money-related and money-adjacent content that is delivered through each customer’s own content feed. MoneyLion provides its customers a full suite of financial and non-financial solutions, bundling its proprietary, low-cost financial products with products that are offered through its marketplace technology and network affiliate partners. MoneyLion also leverages its distinct data, technology, and network advantages to deliver leading embedded finance and marketplace solutions for enterprise customers. Since its founding in 2013, MoneyLion has empowered millions of Americans to take control of their finances and live their best financial life, every day.
For more information about the company, visit https://www.moneylion.com/ and https://www.evenfinancial.com. For investor information and updates, visit investors.moneylion.com and follow @MoneyLionIR on Twitter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221214006032/en/
MoneyLion Communications [email protected]
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Even Financial [email protected]
Built In
Even Named A Built In “2023 Best Places to Work”
New York, Jan. 11, 2023 -- Even Financial ("Even"), an independent subsidiary of MoneyLion Inc. (NYSE: ML), and a leading embedded finance marketplace platform, is proud to announce that it was honored in Built In’s “2023 Best Places To Work” Awards. Specifically, Even earned a place on the Hybrid Best Places to Work in New York.
The Best Places to Work Awards, now in its fifth year, honors companies across numerous categories, sizes, remote-first employers as well as in person and hybrid working companies across the U.S.
Built In determines the winners of Best Places to Work based on an algorithm, using company data about compensation and benefits, and also weighs criteria like remote and flexible work opportunities, as well as other people-first cultural offerings.
This announcement follows Even’s recent win at the Benzinga Global Fintech Awards for “Best API.”
About Even Financial
Even is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE: ML). MoneyLion is a leading digital financial services and lifestyle content platform serving both consumer and enterprise customers. As part of MoneyLion’s enterprise offering, Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2022 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at www.evenfinancial.com and investors.moneylion.com.