MasterCard has the cash flow and the room on its balance sheet to take on
additional low interest rate debt to reduce shares outstanding further and lower its overall cost of capital.
In the aggregate, one can say that they've increased profitability through refinancing high interest rate debt
into low interest rate debt, as well as kept down the cost of human resources compensation packages.
If you have a good history of paying off your credit cards and loans, along with a credit utilization ratio that shows your ability to manage debt, you could qualify for a higher loan amount at a lower interest rate
You may have
a low interest rate debt but it can be concentrated on a few upcoming years which reduces your available income significantly and thus affects your credit negatively.
One tactic to consider here is paying the minimum on all
the lower interest rate debts and putting all your extra money into your higher interest rate debt.
You want to replace your high interest credit card debt with
a lower interest rate debt consolidation loan.
In order to qualify for
a lower interest rate debt consolidation loan, you may need to have an excellent credit score.
By year 11, you will use $ 1,000 for the medium interest rate debt and $ 500 for
the low interest rate debt.