When it comes to credit debt, financial experts believe 2014 could be the year to get above water. With low interest rates and good credit offers, financialists believe the combination of these factors and others are setting up the New Year to be conducive to good debt management opportunities.
Take Advantage of Steady Prime Rate
Much like the last four or five years, the prime rate is expected to remain at 3.25%. This should result in continued low interest rates on things like car loans, student loans, credit debt, and other short-term loans. Experts like Greg McBride of Bankrate.com believe this is the year to take advantage of favorable rates and laws. “The message I would give to borrowers, is that 2014 could be your last hurrah. The days are numbered. It makes sense to plan accordingly and really start to hammer away.”
Car, Credit, and Student Loan Rates
Closely mimicking the low nature of the prime rate, are car loans and credit cards. The APR, or annual percentage rate, is hovering right at 15%. That number should stay the same for much of the year, but can’t be expected to remain so forever. Those with credit debt should take advantage of the opportunity to pay off debts while rates are still considered low.
Experts also expect car loans to remain near their record low of 3-4%. Even more important, those with student loan debt should make it a point to pay as much as they can in this calendar year. These loan rates have the ability to significantly rise in coming years.
This is the year that experts believe people should begin to focus on healthy debt management practices. The rates look good, but they can’t be counted on to stay so for much longer.