0% Credit Cards

0% Credit Cards

In today’s difficult economy, we need to catch a break wherever we can. While racking up debt with credit cards is not ideal, sometimes it becomes a necessary evil. In addition to paying off what you spent, it’s in your best interest to avoid paying an exorbitant amount in extra fees.

The first is to pay your bill on time each month avoid late fees, possible interest hikes or hits to your credit score. Next is making sure you don’t spend an arm and a leg with the interest you already have. If you have a considerable amount of debt, it may be favorable to open a new card with 0% interest. Many companies advertise introductory rates with a set 0% interest on all balance transfers for a set period of time. There is generally a fee associated with this service, but it may save you a considerable amount in interest payments. Fees are generally low, around $50 per transfer, and may actually pay themselves off within a month or two.

To determine if this plan is right for you, look at past statement to see what you paid in interest. Look at the fee for a balance transfer and compare the two sums. Another thing to consider is how large your debt is. If this is an amount you will not be able to pay off by the time your 0% interest expires, you need to compare what the interest will rise to against the card you currently have. After weighting the odds you should come to a rather obvious decision, one way or another.

This isn’t something you should do repeatedly, as opening many cards may affect your credit poorly, but if you’re serious about paying off a credit bill this may be the way to do it.

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