Holiday shopping is a joy for many of us. Who doesn't love seeing friends and family smile when they receive a gift?
But it can also be stressful, especially once the festivities have wrapped up and the credit card bills come due.
Holly Craig, Marketing Channel Manager at Mountain America Credit Union, says people planned to spend about $1,800 over the holiday season and the majority of them, 74 percent, were going to pay for their purchases with credit cards.
When you factor in credit card interest rates, which are typically over 24 percent, you're looking at a sizeable debt that could linger for years.
Holly says, "Only making the minimum payment, it would take about 5 years to pay off the full balance and you'd pay over $1,100 in interest. In fact, in a recent survey 28 percent of people were still paying off balances from gifts they bought in 2023."
Mountain America recommends making more than the minimum payment if you can. Just $10 extra per month could reduce the payment time by years and save the cardholder hundreds of dollars. Consumers with high credit card rates should also consider transferring their balances to a lower rate card.
For example, Mountain America's credit card is a great option when compared to the average credit card. This low rate would further speed up payoff and save the cardholder even more money on interest.
Most large credit card companies charge 3% to 5% of the transferred amount, which can be discouraging if you have a large balance. Many credit unions have low or no fees. Mountain America doesn't charge for balance transfers.
Holly says, "In fact, currently we'll pay you. Through February 28, 2025, we're running a special promotion where you get 3% cash bonus of the transferred amount, up to $500."
By taking advantage of Mountain America's limited-time offer, you can secure a lower interest rate, consolidate your debt from higher-rate loans and credit cards, pay off your debt faster, and switch to an account with better benefits.
"In addition, you can use the 3% cash bonus as extra pocket change, or as I would recommend, apply it to your balance and pay off your card even faster," Holly says.
Visit macu.com/transfer or stop by any of Mountain America's more than 100 branches to apply or to learn more.
***Loans on approved credit. Maximum bonus for the calendar year is 3% of the credit limit on your Mountain America credit card up to $500. Not available on balances transferred from an existing Mountain America loan. Balance transfers will accrue interest from the date the transaction is processed. Cash bonus is considered interest and will be reported on IRS form 1099-INT. Business accounts not eligible. Membership required--based on eligibility. Limited-time offer. Any offer provided by Mountain America can be withdrawn at any time and is subject to change. Offer ends 2/2
