If you're being squeezed by the high interest rates and fees charged by your credit companies, it might be clip to rethink your financial strategy. In today's marketplace, credit card companies vie for your business. You can take advantage of free credit cards and balance transfer options to do purchases, manage your credit card debt, and avoid paying high interest rates and fees.
The first key to taking charge of your credit card debt is to understand the options available to you. Free credit cards not only offer you a shock absorber of financial security, but when used wisely, they can also assist you lower or wipe out the interest rates you're currently paying. In effect, the money you pass each calendar month on interest charges goes money you can utilize to pay down your debt or to pass as you see fit.
As an example, if you have got a $7,000 balance on a credit card that charges 18 percent APR, and you're paying $210 (3 percent) per month, it will take you over 18 old age to pay off the debt. In the process, you will have got paid $6,698 in interest!
If, however, you took advantage of the balance transfer option on free credit cards with a 2.99 percent APR, your $7,000 debt will be paid off in a small under 11 years, with a sum of $611 paid in interest charges. That's a nest egg of $6,087!
When you have offers of free credit cards and balance transfer offers, it's important to read the mulct print. Sometimes, the initial low interest rate will leap to a high interest rate after six months. Other times, though, the low interest rate will be maintained throughout the life of the loan.
Increasingly, consumers are seeing the wisdom in using free credit cards and balance transfer to manage their debt. While it takes some clip and diligence to maintain path of the assorted offers and to utilize balance transfers to your advantage, the benefits are well deserving it.
Balance transfer is also a good tool to utilize if you've gone over your credit bounds on one of your credit cards. Many credit card companies charge bizarre monthly fees when the cardholder transcends his or her credit limit. By anticipating this problem and having free credit cards available that offer balance transfers, you can easily transfer a part of your initial credit card debt to a second card, thereby avoiding punishment fees.
Free credit cards and balance transfer options are of import constituents of financial health, and can allow you to manage your debt painlessly.