Charles H. Miller
Chances are you have seen an ad for some balance transfer credit card. These cards could help everyone reduce or completely get out of debt, but in order to succeed in this game, you will have to discipline yourself.
Generally speaking, a balance transfer card comes with an introductory period of 0% APR, allowing users to move balance from their existing card(s) to this one and save on interest payments. By doing so you could potentially save hundreds of dollars per year.
To Do List
Here’s what you will need to do:
- List all of your cards with the interest rates banks charge you for their use.
- If you have the multiple credit cards, start by moving balance from the card that has the highest APR to the new balance transfer card.
- See if you can move balance from multiple credit cards to a single (balance transfer) card. Get an additional balance transfer card if you have to.
- Leave money aside to make bigger monthly payments.
- Speaking of payments, make them on time and don’t just pay the minimum – pay as much as you can.
- Set up a plan to get out of debt on 1-3 cards by the end of the introductory 0% period. This is related to the 4th point — see how much money you can set aside.
That’s it, and even though it sounds easy – it will take time until you pay off your debt. Depending on how much you owe on each of the cards, this process may extend to more than a year. The important thing is to complete it by the end of the promotional period of 0% APR. Cause after that the card’s regular APR will apply.
The Next Step
Get yourself a balance transfer card. Calling your bank is one option, but the best way is to shop around and see what others are offering. Check out the links below this article to find cards from a number of credit card issuers. From there you can compare a few cards, and select the one that is best tailored to your unique needs. Play to win!
