Interest rates have continued to drop extremely low.
This low average interest rate environment is great news for those who want to invest their extra money but are looking for ways to make their money work harder for them rather than giving it a good night’s sleep.
This means that you can earn some serious money by taking advantage of these extremely low credit card rates for short-term investments and long-term bonds, especially if you can get a decent yield on your extra money or have time to invest it for a long period of time.
However, this is not always easy since most banks and other credit card issuers do not allow savers to access their money during times when they are too eager to earn more interest on their savings account and will only release your funds after you have been with them for several months or years.
Financial experts have advice for individuals who’d like to take advantage of this beneficial period. Here are some common strategies to take advantage of low average rates.
#1- Invest in Stocks
Investing in stocks is one of the best ways to take advantage of low average rates. This is because stocks pay dividends, which are the kind of monthly payment that a company gives to its shareholders on a regular basis.
The more you hold your stock, the more dividends you will receive and thus, the more extra money you will have to invest in other investments or spend on yourself. One great way to start investing in stocks is by opening an online brokerage account.
There is a big variety of a fixed-rate option out there that allows you to invest directly into stocks and bonds without having to go through a bank or brokerage firm.
In fact, some brokers allow you to buy even shares of companies with very little or no money down at all! This is definitely a great fixed-rate option for those who do not want to deal with any paperwork or long forms before they can start investing their money and getting paid for it as well.
We tend to think that the stock market is only reasonable for millionaires. Thanks to investing apps like
Stash and
Acorns, buying and trading shares are accessible to practically everyone.
Now that rates are low and people are saving more extra money than before, it’s a good idea to invest in big company shares for only a few dollars.
#2- Lower Your Credit Card Interest Rates
Many people are concerned about how low interest rates are affecting their finances. However, there is a way to lower your interest rates even further and this can be done by lowering your credit card interest rate.
The reason why most banks charge you such high interest rates is because they make money off of you. Banks make money by charging you interest on the money that you use in their accounts.
If you can lower your credit card interest rate, then the bank will have to pay you more than they’re charging you and thus, they will not make as much money off of you as they normally would.
If this happens, then banks will have to increase their offer on their business loan in order to compensate for the lost profit margin. This means that they may lower the business loan they offer, as well as deposits, in order to keep up with the competition.
Rates are low for many things, but when it comes to credit cards, many people find that they’re slowly slipping into
credit card debt. This is partially thanks to obscenely high interest charges.
If you have credit card debt, the last thing you want to do is make the monthly payment with more interest. For those who want to take advantage of low interest rates, they should consider getting a credit card with a lower interest rate.
Many businesses are offering credit cardholders a way out of debt.
Consider comparing the rates of different credit card companies to determine whether you can ‘switch out’ for lower rates.
#3- Consolidate Your Credit Debt
Consolidating your credit card debt is another great way to take advantage of low interest rates. In the past, credit card companies have taken advantage of consumers by charging them more interest than they’re allowed to charge.
Nowadays, credit card companies are not allowed to charge more than a certain percentage of interest on a certain amount of money. If you consolidate your debt with one company, then you can save yourself a lot of money and still get the same rate as you did before.
The reason why many people struggle with paying off their credit cards is because they use their cards to make the payment for everyday expenses such as groceries and rent.
Once they use up all their available credit, they find themselves unable to fulfil debt repayment off their balance because they cannot afford to make the payment at the interest rate that they were charged before.
So, if you’re already deeply entangled in credit debt, it might be worth going a step farther and
consolidate all of your debts. In doing so, you will be lumping all of your debts into a single account with a specific interest rate.
This way, you’re going to be putting more of your payment into your actual balance of debts, rather than having the majority of your debt repayment go to interest charges. It can also bring you a step closer to getting a perfect credit card score.
#4- Refinance Your Mortgage
If you purchased a home while mortgage rates were still very high, you might want to look into
refinancing your mortgage balance. This can be a surefire way to boost your finances make some extra money.
You can refinance your mortgage rates in many different ways. A refinance option is to do it through a bank, or through a private mortgage broker. Regardless of the refinance option you choose, you
will want to make sure that you’re getting the best deal possible when you go through this process.
This is because when the current interest rate is low, the banks will lower their rates as well. They will want to make sure that they are getting their money back on their loans before the government takes over and takes them into bankruptcy.
If you qualify, you could stand to have hundreds of dollars a month when it comes to paying off your home. By taking this step and applying refinance tips, you can choose to put your money to use elsewhere in your budget or work on paying off your home early.
#5- Find a Better Bank
Finally, your banking practices might be worth changing.
This may be because you may find that your bank charges you too much interest on your deposits, for example.
Furthermore, banks do not typically offer account holders very impressive rewards for keeping money in their accounts. If you’d like to be rewarded for keeping your money in the bank, it’s time to
find a better bank.
If you can find a bank that offers some sort of incentive to open up an account, then you should consider it. For example, some banks will allow you to receive a credit card and additional money on your current account if you open up a new one.
Take a look at the different account and card options available. Choose a bank that offers high interest in checking accounts as well as cash-back for purchases.
Conclusion: Low Interest Rates
Low interest rates are here to stay. With the ever–increasing amount of money that is being saved and deposited into bank accounts, banks are more eager than ever to make extra money off of these depositors.
Most of us could use a little more extra money each month. If you choose to take advantage of historically low interest rates, you’re sure to stretch your budget farther than ever before.
If you can take advantage of low interest rates and avoid the mistakes that many people make when it comes to saving their money, then you can start getting paid more for what you’re doing now rather than waiting for years to get your money back in the future.
Final Thoughts
It’s always great to get paid for doing something that you’re already doing. In this case, it’s a great idea to apply the above common strategies to take advantage of low interest rates on credit cards.
You can save money on your expenses by putting that extra money to work for you. Use this opportunity to invest in stocks, lower your credit card interest rates, fulfil your credit card deb repayment, refinance your mortgage, and get a better bank.
Put in the work with the right strategies so you can make the right informed decisions with confidence. Take the extra mile and refer to a trusted financial analyst or other financial planner professionals. Remember, the key is to start small and keep going! 
