Save Money and Tackle Credit Card Debt

If high-interest credit card debt is weighing you down, you’re not alone—and you don’t have to stay stuck. There are multiple options available, and not every option is the right one for you. The two most common options to consider are balance transfer and debt consolidation using various loan types. There are pros and cons to each. So how do you know what to do?
Let’s look at the options available for addressing credit card debt—and see how these options can help you start saving money and take control of your finances.
The following information is for educational purposes. PenAir recommends meeting with a financial coach to discuss your situation and plot the best path forward.
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Why Transfer Your Balance to a different credit card?
Transferring your credit card balance to another card can offer multiple benefits:
- Lower Interest Rates: Moving the balance from one card to another with a lower interest rate means more of your payment goes toward reducing the principal balance, allowing you to pay off debt faster.
- Consolidation for Simplicity: If you have multiple credit cards with balances, transferring them to a single card can simplify your payments. One monthly payment is easier to manage, helping you stay on track with your debt repayment plan.
How a Balance Transfer Can Save You Money
Imagine you’re paying 20% interest on a $5,000 balance. Transferring that balance to a PenAir Low-Rate Credit Card with a variable rate currently as low as 10.99% Annual Percentage Rate (APR)* can save you hundreds of dollars in interest. Plus, PenAir doesn’t have a balance transfer fee. Typically, credit cards charge anywhere from 3-5% in fees on top of the transferred balance—increasing your overall balance by a few dollars or a few hundred dollars.
See how much you can save using number-crunching calculators.
Other Options for Managing Credit Card Debt
If a balance transfer isn’t the right fit, PenAir offers additional ways to tackle credit card debt while saving money:
- Personal Loans
Merge your credit card balances into a single personal loan with a fixed interest rate and get predictable monthly payments—and a known payoff date. This option often provides a lower interest rate compared to credit cards, helping you save money and simplify repayment. - Financial Coaching
PenAir can connect you with a certified financial counselor, or Financial Coach, to help you cut through the noise when your credit card debt feels unmanageable. But you don’t have to wait until that happens to get help. Your coach can help you set up a debt management plan (DMP) to combine multiple credit card payments into one monthly payment, often with reduced interest rates negotiated by the counseling agency. - Home Equity Line of Credit (HELOC)
A HELOC can be a cost-effective way for homeowners to pay off credit card debt. Because your home secures HELOCs, they typically offer much lower interest rates than credit cards or personal loans. However, it’s important to consider the risks involved, as your home serves as collateral.
No matter your situation, PenAir Credit Union is here to help you find the right solution to tackle credit card debt. Whether you choose a balance transfer, personal loan, or another way, acting now can save you money and reduce stress.
Ready to make the move? Schedule an appointment with a Financial Counselor or stop by your nearest branch to learn how our team members can help you create a plan that works for you.
*Rate as of January 1, 2025. APR is based on the Wall Street Journal Prime Rate which may vary with the market and is based on creditworthiness, qualifications and collateral conditions. The cash advance fee is $5.00 or 3.00% of the amount of each cash advance, whichever is greater. Subject to credit approval. Additional limitations, terms and conditions may apply.
With PenAir on Your Side, You can Crush Your Debt
Start working out your financial freedom muscles with one–or all– the options below!