One of the primary reasons why credit card debt is so hard to get out of is because of the high interest rates that is added to it every month. If you can only get rid of this rate, do you think you can pay off your debts quickly?
If that is all that you need to get ahead of your credit problems, then there is a way for you to get rid of your credit card’s interest rate. It is another type of debt consolidation that makes use of balance transfer cards.
The idea is to literally transfer the credit card balance to another account. You can shift your balance to an existing account that has the lowest interest rate but if your goal is zero interest, you can avail of a new account that offers this as an introductory promo.
With all the negative publicity about how credit cards can easily put anyone in debt, banks and credit card companies came up with a promotion that will attract discouraged consumers. They offer these zero interest cards so debtors have the option to transfer their high interest credit card balance into this new account. Of course, there is a fee involved that is usually a percentage of the amount that you will transfer. Nevertheless, the elimination of the interest rate is a great way for anyone to eat up a huge portion of their debt.
The companies behind these balance transfer cards are strictly mandated by the government to lengthen the zero interest promo period. The minimum is 6 months. After that, these cards will go on to their intended high interest rate charges.
Before you proceed with this debt relief option, you need to come up with a payment plan that will take advantage of the time when you will be free from the high interest rates of your credit card. If you have a huge amount coming in, you should put all of that in your debt payments. The goal is to pay off your debts during the promo period - or at least have the smallest balance left. Despite the presence of the high interest after the promo, you need to pay that off immediately to keep your debts from growing bigger again.
When you are choosing a card to use in your balance transfer, you need to read through the fine prints to make sure that you understand the charges involved. More importantly, you need to ensure that you know the time limit of the zero interest privilege.
As you are paying off your debts, you need to be very careful about the rest of your cards. You have to maintain a strict spending diet. If you have to, lock up your credit cards - which incidentally are now free from balances. That can be very tempting to use and thus grow your debts once more. Keep them hidden as long as you like - at least until after you are convinced that you can control your credit card spending.
If that is all that you need to get ahead of your credit problems, then there is a way for you to get rid of your credit card’s interest rate. It is another type of debt consolidation that makes use of balance transfer cards.
The idea is to literally transfer the credit card balance to another account. You can shift your balance to an existing account that has the lowest interest rate but if your goal is zero interest, you can avail of a new account that offers this as an introductory promo.
With all the negative publicity about how credit cards can easily put anyone in debt, banks and credit card companies came up with a promotion that will attract discouraged consumers. They offer these zero interest cards so debtors have the option to transfer their high interest credit card balance into this new account. Of course, there is a fee involved that is usually a percentage of the amount that you will transfer. Nevertheless, the elimination of the interest rate is a great way for anyone to eat up a huge portion of their debt.
The companies behind these balance transfer cards are strictly mandated by the government to lengthen the zero interest promo period. The minimum is 6 months. After that, these cards will go on to their intended high interest rate charges.
Before you proceed with this debt relief option, you need to come up with a payment plan that will take advantage of the time when you will be free from the high interest rates of your credit card. If you have a huge amount coming in, you should put all of that in your debt payments. The goal is to pay off your debts during the promo period - or at least have the smallest balance left. Despite the presence of the high interest after the promo, you need to pay that off immediately to keep your debts from growing bigger again.
When you are choosing a card to use in your balance transfer, you need to read through the fine prints to make sure that you understand the charges involved. More importantly, you need to ensure that you know the time limit of the zero interest privilege.
As you are paying off your debts, you need to be very careful about the rest of your cards. You have to maintain a strict spending diet. If you have to, lock up your credit cards - which incidentally are now free from balances. That can be very tempting to use and thus grow your debts once more. Keep them hidden as long as you like - at least until after you are convinced that you can control your credit card spending.
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