If you are like me, you receive multiple 0% APR credit card offers on a daily basis. Up until about a year ago, I would just throw them away. Then I wised up and saw an opportunity. Not only could I consolidate my current credit cards, I could eliminate unnecessary interest expenses.
I first transferred all outstanding balances from my high-interest credit cards (which were all of them) to my new 0% card. Now I was only making one payment a month instead of three. I then determined the average payment I would have to make each month to have it paid off at the end of the promotional period. That’s the payment I made each month and it saved me a great deal of money in interest charges. At the end of the promotional period, my debt was paid off and I hadn’t spent a dime in interest! The other option would have been to transfer the balance once again to a NEW 0% card at the end of the promotional period, further lowering the initial monthly payment.
I do have a few suggestions before jumping in and signing up for any 0% card. Compare all offers that are out there! Read the terms very carefully. Is there a balance transfer fee, and if so, how much is it? Does the 0% apply to balance transfers only or to purchases as well? How long is the 0% promotional period? Know the terms well or this 0% card could cost you more than that 18% card you’re already carrying in your wallet. There are more credit card companies out there than you can imagine ?take your time to evaluate multiple offers and pick the one that is the most beneficial to your needs. The right card can save you a great deal of money.
Jennifer Tarzian holds a Bachelor of Science degree in Psychology. Her experience includes sales, service, and managing a small corporation. She is proud to be a stay-at-home mom and enjoys spending time with her family and friends.
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