How to pay off debt with a 0% balance transfer credit card
October 24, 2009
If you have a lot of credit card debt and looking for ways to pay it off, there is hope for you. You can eliminate your credit card debts without hurting your credit score by a 0% balance transfer credit card.
Using a 0% interest balance transfer credit card to pay off debt is an excellent idea. The technique is legitimate and easy to perform. It can help you save thousands of dollars on interest payments.
Four easy steps to become debt free with a 0% balance transfer credit card
Following are four easy steps that can help you get out of debt with a 0% interest balance transfer credit card:
1) Make a list of your debts
Once you have made the decision to become debt free, the initial step is to prepare a list of your debts based on the interest rates and the amount that you owe.
2) Go for a 0% balance transfer credit card
There are various credit card companies that provide 0% balance transfer credit cards. 0% usually means that no interest would be charged on balance transfers for a stipulated time period. This is what you have been looking for. Request for one such card. If possible, you should apply for more than one balance transfer card depending on your amount of debt.
3) Transfer your balances
When you’ve been approved for a balance transfer card and you have received one, transfer all your other card balances to that card. At first, shift the balances that have higher interest rates. This helps you save money in the long run. Once you’re finished with the balance transfers, discontinue your high-interest credit cards. Of course, you would not wish to use them and fall into debt once more.
4) Pay off your balances
After transferring all your balances to the 0% card, pay them off sincerely. Remember that this 0% offer is only available for a small period, possibly 6 or 12 months. When you’re making your debt payments throughout that period, you’re lowering your principal fast since you’re not required to pay any interest. Try to pay off all your debts before the 0% offer period expires.
If you have become overwhelmed by a huge burden of credit card debt, a 0% interest balance transfer credit card can help you save on interest costs and become debt free faster.
