Choosing and using low rate & 0% credit cards
It is true that credit cards are a cheaper, as well as easier way to go about paying for things than most standard loans. The thing to look out for is that they offer good rates at first, and then change them to be much higher and cost you more money. Always make sure that you can easily afford the payment for whatever item it is that you are thinking of buying with your card, and take into account the interest also.
To choose wisely, you have to do quite a bit of research. You want to research a new credit card, one that allows balance transfers at little or no interest rate at all, and transfer your balance from the high interest rate credit card to this one. The key to this is that once you do this, you need to close the card with the high interest rate, so that you don’t rack up the credit again. Also, most of these balance transfer opportunities only last for a certain period of time, so you have to have a great amount of discipline to pay this off in the allotted time.
4 recommenced steps:
1. 0% Interest is KEY - When looking for a card to transfer to, you want to look for the advertisement “0% interest for balance transfers”.
2. Make sure you pay in allotted time - This 0% doesn’t last for forever. Make sure you take note of how long this is effective for (6-12 months.) Make sure that the balance that you have transferred is something that you can pay off within this allotted time, otherwise once that period is over, you’ll be back to paying the interest rates again.
3. Repay, or move the debt before the program ends! - As mentioned before, once this 0% period ends, the credit company will raise the interest rate quite a bit. They will raise it to what is called an APR, usually this APR is anywhere from 10-20% on average. At this time, you want to either be in a position where you have paid off this debt, or you are looking into a new balance transfer to repeat this balance transfer process.
4. Repeat the process
Just remember, To do this, you have to be very careful and willing to do this the right way, otherwise you’ll end up in debt with high interest rates again. You need to be very disciplined with this, and keep track of exactly what’s going on. If you don’t you could possibly end up in the same situation and all of your hard work will have been for progress in your quest to eliminate your debt.
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