If you are juggling your monthly finances and robbing Peter to pay Paul, then 0% APR credit cards are likely to immediately take the pressure off you. Introductory offers provide a zero interest rate on balance transfers for a specified period of time after which the normal interest rate is charged. Obviously, the longer your interest free period the more money you will save and the longer you will be free of the financial pressure of having to make high monthly payments. Also there is no reason why you can’t transfer your balance to yet another low or zero rate card at the end of the introductory period.
For 0% APR credit cards to provide a long term benefit, however, you will need to use at least some of your interest savings to reduce your balance. The lower you can get your balance, the lower your normal payments will be at the end of the introductory term. You can keep transferring your balance to zero rate cards until you can get the balance down to a level that you can actually afford on normal rates. Alternatively, you may prefer to reduce your balance and then apply to refinance it with an unsecured personal loan. The advantage of this option is that you will be debt free at the end of the term of the loan and you cannot reuse the credit and build up debt again.
The risk of increasing your card debt after transferring your balances to 0% APR credit cards is very real. It is very important that you understand the terms and conditions of your introductory offer. It may be interest free on your balance transfers but charge their normal rates for new purchases. Also if you continue to use your new card, you will find yourself back in the same stressful financial position at the end of your introductory period, perhaps worse.
The quickest and easiest way to locate the best 0% APR credit cards is to use the internet. If you do a search for zero rate cards you will notice a lot of websites that market a range of different cards from different companies. These sites generally provide fairly comprehensive comparisons between the types of card to help you make an informed decision. When you are ready, you can even apply online. Don’t worry if you think their selection is too small. They have already gone through a number of different offers and kept the best to offer on their website. Using a site like this can save you a lot of time and give you the best chance of making the right decision.
For people in debt, 0% APR credit cards can be a financial boon. Whether you are struggling to make your monthly payments or not, wouldn’t you rather have the money in your pocket than pay it to your card providers? You can choose to reduce your debt or improve your quality of life in some way. How you take advantage of introductory offer cards is up to you. The important thing is that you do it.
