The Back Pocket
Use Your Good Credit to Consolidate Debt & Save Money
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.
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