Pay Off High Interest Debts With the Help of Rate Cuts. (November 2008)   Mortgage borrowers in Ireland may witness a continued drop in their loan repayments if the European Central Bank (ECB) respond to global financial pressure and slash interest rates further. It could see a new historic interest rate low if the EU and British economic policymakers react in this way. A meeting between the European Central Banks governing council and the Bank of England’s monetary policy committee will see discussions taking place amid calls for additional unprecedented rate cuts. Economists are predicting a cut of at least half a percentage point, leaving the European Central Bank rate down to 3.25 per cent and the Bank of England’s rate down to 4 per cent. This follows both financial establishments slicing interest rates by half a point on the 8th October 2008, in a co-ordinated global move to help ignite economic activity around the world. The move from the European Central Bank meant that Irish homeowners with variable rate mortgages saw their monthly re-payments fall by €50 - €150, as the major lending companies passed on the rate cut. With some borrowers experiencing savings due to the interest rate cuts, it could be seen as an ideal opportunity to clear high interest debt, such as credit cards. Clearing credit card balances When trying to clear a balance on a credit card, it is important to try to pay off more than the minimum repayments set out by the lending company. The longer it takes to repay the charges, the more interest the lenders will make and the more the borrower will eventually pay. Snowballing debt repayments is also a good way to clear arrears. Transferring entire balances from one credit card to one with a lower interest rate and paying that off quickly will see debts decrease, resulting in increased money being available to tackle any other debts. Debt Buster Calculator Please visit the Debt Buster calculator available on this site, which will provide an easy guide to the advantages of paying a little extra off your current debts each month. Simply complete the information asked for about your loan details and Debt Buster will do the rest. Your completed Debt Buster will be saved on the site with your own personal, confidential password for you to access it anytime. For the Debt Buster please click here.