Financial experts recommend consolidating credit card debt using a 0% interest credit card.
Nevertheless, successful consolidation will still depend on how well you can manage your zero interest card.
In this article, let’s discuss some tips on how to use a credit card with 0% APR to recover from bad debt.
To Transfer Your Balances Or Not
Should you apply a new credit card with zero interest rate? If you only have a small amount of balance in two different credit cards, then perhaps applying for a new credit card won’t be necessary. Instead, you may adjust your personal spending to pay off your debts more quickly. You can also call your credit card company to request if they can waive or reduce your fees to help you out with your repayment.
On the other hand, if you presently have unpaid charges in three different credit cards and each of your cards have a high APR, then transferring balances can really be a great help. Such a move will give you the chance to concentrate on your payments without worrying about additional interest rate fees.
Which 0% Interest Credit Card is Best?
Zero-rate credit cards vary from one issuer to another. While other issuers may offer the zero interest for 12 months, others may only offer 6 months or less of 0% APR period. It is very important to know how much the regular rate would be when the introductory period expires.
Cardholders may sometimes need to carry over a balance long after the zero-rate period has ended. If you do not make the right choice, you could end up with a credit card that has an even higher APR than the previous credit cards you had.
If you have decided to consolidate credit card debt with a zero interest card, spend the extra time doing research, comparing deals and understanding the Terms and Conditions of your chosen credit card.
Use Your 0% Interest Credit Card to the Fullest
As soon as your application has been approved, do your best to complete your payments within the zero interest period. If you are required to use your 0% card on new purchases, carefully consider your charges and be sure to keep up with your due dates. After zeroing in your balance, be more conscious about your spending habits and lifestyle.