Credit card interest rates are at an all-time high, making them a costly option for borrowing. This article explores three cheaper alternatives to credit cards for borrowing money.
Credit cards are becoming more expensive. Interest rates on the product were already high and, toward the end of 2024, they rose even higher. Now at an average of 23.37%, credit card interest rates are the highest they've ever been. And, unlike other products that may become cheaper as interest rate cuts are continually issued, credit cards are likely to remain expensive for the foreseeable future.
This is partially why delinquencies are high now and why the average credit card user has around $8,000 in debt. In this climate, it's understandable if borrowers are looking for other, less pricey ways to borrow money. Fortunately, there are multiple, cheaper ways to borrow and, for some, a clear pathway to borrow as much as a six-figure sum of money. Below, we'll break down three cheap ways to borrow money without using a credit card right now.Start by seeing how low of a home equity loan rate you could lock in here. 3 cheap ways to borrow money without using a credit cardHere are three cheap ways to borrow money now without having to swipe a credit card now: Home equity loansThe average home equity amount is about $320,000 right now. And owners can borrow it at a median interest rate of just 8.41% currently. That's almost three times cheaper than what the average borrower would pay by using a credit card. And, if the interest rate climate cools further in 2025, borrowers can always refinance their home equity loan to the new, lower rate at that point. Credit card users, however, will likely remain stuck with a much higher rate. In addition, interest on home equity loans is tax-deductible if used for eligible purposes. For all of these reasons, then, a home equity loan may be your best way to borrow money right now. Get started with a home equity loan online now. Home equity lines of credit (HELOCs) HELOCs also allow homeowners to borrow from their home inexpensively, with the funds available via a revolving line of credit versus the home equity loan's single lump su
BORROWING CREDIT CARDS DEBT HOME EQUITY LOANS Helocs
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