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You’ve paid off your credit card, now what? First, congratulations on meeting one of your financial goals! Paying off credit card debt is a huge step and can take a lot of work. You’re probably now wondering what you should do next and we’ve got some ideas and tips to help you navigate your next steps.

What is an interest rate?

Let’s start first with the basics of understanding what an interest rate is. The interest rate is the rate at which a lender will charge for you to borrow the funds from them. This rate is a percentage of the loan amount, so the amount you pay in interest will be based off the principal balance of the loan.

Are you considering getting another credit card? There are many reasons why this may sound like an appealing idea. Depending on your situation, it might be the perfect time or it may be better to wait a bit.