Low Interest Credit Card

How To Stay Out Of Credit Card Debt

low — Sat, 19 May 2012 15:26:56 +0000

The biggest budget killer of all time is the high interest credit card. To have any chance of getting your finances in order and get ahead, it is most important to know how to stay out of credit card debt.

It used to be it would take an average of 52 years to pay off a high interest balance if you paid your minimum monthly payment! Do you think that’s bad? Well, it’s gotten worse. The average time it takes to pay off these credit card balances today by making the minimum monthly payment is: never!

29.99% compounded daily!

Unbelievably, there are many companies that charge 29.99% and even more on their customers’ balances and, if that’s not bad enough, they compound the interest daily. With a 29.99% card you pay about 2.5% interest per month on your balance.

So, if you owe $2,000 on a card that is charging this excessive and unseemly rate, you would be paying $50 the first month just in interest! I say the first month because if you don’t make your payment on time or if the minimum monthly payment due is less than $50, your total amount owed will increase the next month.

Many credit card companies will set your minimum monthly payment at less, or about the same as the 2.5% interest you will be paying each month. If they do this, and you continue to pay the minimum, you can see how you will never pay off the total balance or even pay it down at all!

However, if you would pay $70.00 a month, instead of $50 on this $2,000 total, you will be paid in full in a little more than 4 years. Do you think these credit card companies want you to pay your balance in full? You can bet they don’t!

High interest credit card companies hold you hostage!

Why would a credit card company want you to pay your balance in full when they are charging an interest rate 5 times the prime rate?

Is all of this making you sick? It should be, but if you have a particularly strong stomach, read some of the other wonderful things these great credit card companies do.

1-If you are late they hit you with a late charge, which is usually $35.00! Even if you’re total balance is $10.00! In this case they would be realizing a return of 4000% on a yearly basis.

2-If you pay over the phone they charge you $10 to $15 for about 2 minutes work.

3-Many of these scoundrels have a minimum finance charge. So, if you have a balance of only a few dollars, they will charge you a $10 fee anyway!

4-If you’re late with a payment, even though they love it because they get to rob you out of another $35.00, they’ll report you late to the credit bureaus so eventually they can ruin your credit rating altogether! Nice guys!

Why would a credit card company want to give me bad credit?

I am 100% convinced it is impossible for anyone to get ahead financially while having high interest credit card balances. These credit cards have destroyed the credit of millions and the companies are happier than pigs in mud that they do.

As long as they can keep your credit rating low, you will not qualify for good loans with reasonable terms. So these horrible credit card companies have a better chance of talking you into their horrible deals!

How do you start getting rid of high interest credit card debt?

If you want a shot at becoming financially successful you have to know how to stay out of credit card debt. Cut up all your cards. Get a debit card and never charge anything on a credit card again.

Pay off all the balances on all the cards by paying a large amount toward one each month. Pay the one with the highest interest rate and when it’s paid start on the one with the highest interest rate of those remaining.

If you owe $10,000, paying off $500 a month will have you paid off in a little more than 2 years. I know people who are paying $500 a month now and are not paying down their credit card debt at all because they are getting hit with late charges.

Refinance your mortgage to pay off high interest credit debt if you have to. It will be well worth it in the long run. If you don’t own a home or you can’t swing a refinance, go to a non-profit credit counseling service. They can get lower rates for you and set it up so you can make one payment a month to them. Just make sure you go to a non-profit debt management organization and they will handle your debt situation without charging you more fees.

It’s a sound financial move.

I can guarantee if you asked financial advisors, economists and/or financially successful people, “what is the first step to becoming well off?” Every one of them will tell you, “Learn how to stay out of credit card debt. Period.” Exclamation point!

The author of this article is Ed Lathrop. He is a successful real estate investor and a series 3 commodities futures broker. He has extensive knowledge of the credit/mortgage markets and has developed a mortgage calculator Website complete with a “Pay Credit Card Debt Quick” calculator. Come visit at Free Mortgage Calculator Also, find out how to pay off your mortgage way ahead of time and save 10′s of thousands of dollars doing so at Free Amortization Schedule These Website are Free to use and are not owned by any lender or mortgage broker, so you won’t be harassed for visiting them.

How to Reduce Credit Card Debt – An Effortless Plan to Reduce Your Credit Card Debt

low — Sat, 19 May 2012 11:02:56 +0000

No matter how long you avoid opening the envelope which contains your credit card bill, you will still get annoyed. It will not help you come out from the financial mess you are in at the moment. The longer you do not pay, the higher the rate of interest will become, which is only going to increase the amount that you will need to pay. You will only loose time and more money, if you are waiting for a miracle to happen which will make your creditors lower the amount of debt you owe to them. The more you spend time in thinking how to eliminate credit card debt, the more your amount of repayment will increase. And as the amount increases, you will surely loose hope and gain an even higher level of stress. However, repaying your increasing bills could have been easier only if you had known better ways.

You must be wondering how to eliminate credit card debts. Do not panic, you will come to know this shortly. The very first thing you need to do is to gather all the bills you have received to date. By doing so, you will know how many months have you been billed for. This should not just consist of your credit card bills, but also all the other spending you have done on car loans, to the smallest things, such as your cup of coffee.

Now, you need to give some concern to the items you have listed so far. What you have accomplished today, is due to all the spending on these. You must prepare two different categories, which are “unimportant” and “imperative”. By the time you are done listing the items under these categories, you will have a fair ideal of where did you go wrong? Set your priorities and follow them as this is one way of how to eliminate credit card debt. Also you will save money to pay the bills for the items you need to pay that are more important in each month.

These facts will be all black and white and easier for you to understand the situation better. Take the list you have prepared as a manual to limit your self from spending extra amount on unimportant items. Had you not spent unnecessarily, you would be having a fair amount of money to pay your credit card bills. If you always wondered how to eliminate credit card debt, then you have the answer on the paper in the form of the list you have come up with. If you have more than a single credit card, then you can use them more wisely by using one for the monthly debt and the other for small amounts. You will feel extremely happy once you become successful in making yourself credit card ‘free’. Now you can help others by telling them how to eliminate credit card debt.

The outcome of this exercise certainly sounds good, but it can only be achieved if the person has the willpower to stick to the plan.

The Plan:

1) Identify ALL expenditures – Perhaps carry a small notepad for a month to write down incidental expenditures. But make certain you write down ALL expenditures.

2) Categorize all expenditures – Place two columns on a sheet of paper and name column one: Necessities (Rent, Mortgage, Lights, Gas, etc.,), then name column two: Non-Necessities (Soda Pops, candy bars, movies, etc.,).

3) Identify all credit cards and their interest rates – Place highest “Interest Rates” first, not highest card owed.

4) If possible transfer high interest rate cards to low interest rate cards. Important: Make sure there is no charges associated with a transfer that would make it a costly move.

5) Reduce The Debt – Reduce The Stress – Take all the money saved from the unnecessary spending in column two of your “Categorize all expenditures” list and apply it to the card with the highest interest rate until it is paid off. Then do the same to the next card on your list, and so on…

Important Note: Do Not Charge Any New Debt During This Process!

Final Note: If you call your creditors and explain your situation (perhaps there was a layoff or sudden loss of employment or etc.), and let them know you are creating a refined budget to get things caught up. Then ask them if they can help by suspending the interest rate on your card and removing some penalty charges. You might be very surprised to find they are VERY helpful. Perhaps not all will be helpful, but nothing lost by trying.

My very best to you dealing with your creditors. I know it can be stressful. If you would like to read more about dealing with creditors please visit Pay Credit Card Debt Off dot org.

To eliminate credit card debt, one needs to prepare a plan and stick to it to overcome the debt. For more information, regarding how to reduce debt, visit us at http://paycreditcarddebtoff.org and improve your financial condition, and leave the stress of the debt behind. I am the Author: Daniel Ambrose, and I have been there and I understand. Feel free to leave questions on my website and sign up for my free newsletter.

Credit Card Debt – Top Ten Tips To Pay It Off Fast

low — Sat, 19 May 2012 07:49:56 +0000

Credit card debt is very easy to get into but can seem much harder to get out of. The good news is, it can be done. Follow these ten easy steps and start to take control today.

1: Make a budget – In order to get out of credit card debt you need to figure out where you went wrong and ensure it does not continue to happen. Write down a list of all your monthly incomings such as wages (after tax), interest or dividends from savings and so on. Then write a list of all your regular outgoings such as mortgage or rent payments, loans, utility, phone and internet bills, fuel & vehicle maintenance, insurance, healthcare, groceries and clothes. You also need to work out how much you are currently spending on other aspects of your life such as entertainment, eating out and clothes shopping. Add up your total incomings and take away your total outgoings. This will leave you with your current monthly cash flow. If your outgoings exceed your incomings you will have negative cash flow and therefore are pushing yourself further into debt each month. Look through your expenses and look for areas where you could cut back. Perhaps you are eating out to often or treating yourself to those nice shoes or clothes more than you need to. You need to have some rewards but make a budget for non-essentials and stick to it. You can then use the spare cash flow each month towards paying off your credit card debt.

2: Pay more than the minimum balance – credit cards have traditionally had a minimum payment each month equivalent to 3 – 4 percent of the credit card balance. Now they can be as low as 1.5 percent. At that rate it can take years to pay a card off due to the interest charges. Pay as much as you can afford each month over the minimum. You will find your repayments exceed the interest charges and you debt starts to reduce,

3: Highest interest cards first – If you have more than one credit card then focus your efforts on paying off the card with the highest interest rate first. Rather than paying a few extra dollars off every card each month, pay the minimum balance on all cards other than the one with the highest interest. Pay all you can afford off this card until you have paid the balance off in full. Once this is done you should move onto the card with the next highest rate of interest and repeat the process.

4: Credit card interest is calculated daily – You receive your credit card bill once per month but your interest is calculated daily. Make repayments as often as you can afford. For example, if you get paid each week and can afford to pay $100 off from each pay packet, pay $100 off each week rather than waiting until the bill is due. That way you could save several weeks worth of interest on the money you pay off. Over time this can make a big difference,

5: Consolidate your credit card debt into one place – When you have several credit cards it can be difficult to manage the debt and remember which cards you have paid off. Many credit cards have hefty penalties for late payment which will set you back from reducing the debt. Having all your credit card debt in one place makes it much simpler to manage and gives you a clearer picture of your financial situation.

6: Balance transfers – one way to consolidate your credit card debt into one place is via a balance transfer to a new credit card. Many credit card companies offer introductory balance transfer offers such as 0% interest for 6 months. This is a very effective method; however you should try to ensure that you pay your debt off within this introductory period. You also need to consider what interest rate the debt will default back to after the introductory balance transfer period ends.

7: Low interest credit cards – Credit cards have traditionally been an expensive form of debt with interest rates around 18-19%. With increased competition a new breed of low interest cards have emerged. These cards have an ongoing interest rate around 10-13%, sometimes even lower. Low interest credit cards are useful if you carry an outstanding balance from month to month. They tend to have less frills such as rewards schemes but will save you far more in reduced interest payments

8: Talk to your credit card company – If you are having real trouble paying off the debt then you should try calling your credit card company and explaining the situation. Many are very helpful and may arrange special payment terms to help you pay the debt off.

9: Use a debit card – If you are struggling to keep your spending under control then you could consider using a debit card for new purchases. A debit card has similar acceptance to credit card but is linked directly to your savings account. As a result you can only spend what you have. You can keep a credit card for existing debt while you pay that off and for major purchases.

10: Finally, don’t stress – While credit card debt can seem very stressful it can be brought under control. Use the methods outlined above to get you started. There are also non-profit organisations which help with credit card debt management and financial advisers who can devise a detailed strategy for debt reduction to suit your needs.

Rich Greenwood is Director of Australian credit card comparison website http://www.click4credit.com.au The website allows users to compare credit cards offers and apply online.

The website features regular articles on credit card balance transfers, debt reduction & consolidation, airline rewards schemes and budgeting.

Credit Cards Are Not All The Same – Choose Wisely

low — Sat, 19 May 2012 04:06:56 +0000

Choosing a credit card can be a complicated task. It was much easier when a credit card offer came from your bank or your credit union. Nowadays, credit card offers come from all sorts of retailers.

The credit card business is just that, a business. As with any business, the competition can be fierce.

Interest rates, annual fees can vary greatly and the terms for each card offer are not always the same.

Do not just accept a card offer on the bases that you are approved. Doing so can cause a tremendous financial hardship if you don’t understand the terms.

The following explains the types of credit cards that are available to many people. Make sure you understand how each works and choose the type of card that will work best for you.

Zero To Low Interest Rate Cards

These types of cards are ideal for transferring existing high interest rate balances. If you are able to pay off your transfer balance within one year, this could be the card for you.

These types of cards offer a rock bottom interest rate and this can save you a ton of money.

However, the low interest rate offer usually lasts for a limited time. After the ‘special offer period’, the interest rate then goes up to the normal 14 to 18 percent. In addition, if you are late only once, the high interest rate can kick in immediately.

If you choose this type of card to transfer an existing high balance, pay it down immediately or the higher interest rate at the end of the ‘special offer period’ may cause you to pay a whole lot more.

Rewards Card

A rewards card is good if you pay your credit balance in full each month. Cash back, airline miles, or points will be insignificant if you have to pay a high interest rate or a high annual fee.

In addition, make sure you understand the redemption policies, as they may be complicated, unfavorable or hard, if not impossible, to meet the card conditions.

The key again is to pay off the balance each month so that you don’t pay for the benefits by paying lots of interest.

Secured Card

A Secured Credit Card is ideal for someone trying to re-establish credit. Your bank or credit union may offer a secured credit card, so make sure to ask.

Be aware that annual fees and application fees may apply and interest rates are high and can vary widely so shop around for the best deal.

You are also going to have to make an initial deposit on a secured card and your credit limit will be relative to the amount you deposit.

Student Credit Cards

College students beware! Students can easily qualify for these types of credit cards and usually do not need to have established credit.

These cards most always come with very high interest rates and a student with no experience handling a credit card can quickly build up lots of interest charges and late fees.

Carlos D Cruz

ccruz@debtcreditlearningcenter.com

[http://www.DebtCreditLearningCenter.com]

You can now get your questions related to debt and credit answered for FREE!

A great resource! Click Here [http://www.debtcreditlearningcenter.com/ezine-newsletter-sign-up]

0% Interest Credit Cards – Shop Big and Stay Burden-Free

low — Fri, 18 May 2012 23:30:56 +0000

Though not for a long time but the 0% interest credit cards can help you quite a lot. The benefits associated with these cards are satisfactory and if you get such a beneficial card then the best thing will be to grab it rather than let such a good opportunity go.

The 0% interest rate offers on such credit cards are temporary and do not last for life time. But in spite of this you can go for these cards because for whatever time these cards are being provided it will be of good help to you. An introductory period of 9 to 12 months is being covered by these cards and within that duration no interest rate will be charged on you. Once the introductory period is over a percentage of interest rates will be charged on you.

These cards will be of great help to those people who are suffering from excessive credit card debts and are searching low interest credit cards. They will be relieved a lot as they would just have to pay the principle of the credit cards and no interest rate. You can easily transfer the balance of your high interest credit cards to these no interest credit cards.

For making big and expensive purchases too these credit cards are perfect. Whatever big the balance will be you can keep paying it without taking any tension of interest rates. Thus, there is no pressure of repayment.

It is important to have a good credit score if you want these credit cards to be approved to you. In addition to this, you must provide your income and personal details. It will be better for you to avoid providing wrong detail as that will deprive you from getting these cards.

The most important thing to be done before applying for the 0% interest credit cards is to go through all the terms and conditions of these cards. The fine print should always be given more stress as all the criteria are being mentioned there only.

Amy Gordon is associated with Low Interest Rate Credit Cards. She holds a Master’s in finance from Cambridge University. To know more about 0% interest credit cards [http://www.lowinterestratecardsz.com/0_interest_credit_cards.html], online credit cards, low interest credit cards, no interest credit cards please visit [http://www.lowinterestratecardsz.com/]

How to Compare Balance Transfer Credit Cards

low — Fri, 18 May 2012 20:26:56 +0000

Balance transfer credit cards are cards that allow users to consolidate their credit card debt. These cards work by allowing the cardholder to transfer the outstanding balance on all their cards to one single credit card. This results in lower payments and best of all, one interest charge instead of two or more depending on the number of cards you have.

When comparing balance transfer credit cards, be sure to carefully read the fine prints. Failure to do so can result in higher monthly fees as well as a higher interest rate (APR) than you expected.

The first item to compare on balance transfer credit cards is the APR. Some offer extremely low introductory APR but once the introductory period has expired their rates may end up being higher than a card that starts out with a higher APR. Most importantly, ensure that the introductory rate refers to the transfers as well as current balances.

Next check out how long the introductory APR you are offered will last. If you can pay off your balance during the length of the introductory period, a 0 or low APR is great even if the interest rate after the introductory period is high.

Are there balance transfer fees? This is an important question that needs to be asked as failure to do so may require that you come up with even more money. A balance transfer fee of anywhere between three and four percent (3%-4%) is possible. If you transfer a balance of six thousand dollars and pay a transfer fee of three percent (3%) you will need to come up with an additionally one hundred and eighty dollars ($180). At four percent (4%) on the same amount you will need to pay two hundred and forty dollars ($240).

Compare the penalties for late payment. A late payment can send a low APR card’s interest rate way up, sometimes the rate can double or triple because of one late payment.

To compare balance transfer credit cards, Eric Wasselman recommends Find Credit Cards.

Where Have All the 0% Balance Transfer No Annual Fee Credit Cards Gone?

low — Fri, 18 May 2012 15:42:56 +0000

If you listen to some consumers, you’d think all of the 0% balance transfer no annual fee credit cards have all magically disappeared from the market. Horror stories abound about people signing up for what they thought were these cards, only to be hit with high fees later. Believe it or not, these elusive credit cards do still indeed exist. It’s just a matter of knowing what to look for. Here are some tips to keep in mind.

1. How Long Is The 0% Really 0%?

The first thing you need to ask when looking for 0% balance transfer no annual fee credit cards is how long does the 0% interest rate last? After all, if it’s only a 6-month offer and you owe thousands of dollars, chances are you won’t have time to pay it off before the “real” interest rate kicks in.

Which brings us to point number 2…

2. What’s the “Real” Interest Rate?

If the 0% offer isn’t good for the life of the balance, what does the rate go up to when the offer expires? If you’re looking at a 22 percent interest rate after six months, you might be in worse shape in six months than you are right now. In this instance, the 0% balance transfer no annual fee credit cards can be your worst nightmare – not your best friend.

So how do you avoid the nightmares? By knowing what’s out there. Which brings us to our other points…

3. Life of Balance Offers Do Exist

No matter what your credit card companies want you to believe, life of balance credit card offers are out there. However, 0% balance transfer no annual fee credit cards that offer a 0% interest rate for the life of the balance are very hard to find. Even if you do find them, you have to have excellent credit to qualify.

If your credit is less then perfect, this type of card isn’t going to be an options. That being said…

4. There Are Suitable Substitutions

If you don’t qualify for the 0% balance transfer no annual fee credit cards that offer a 0% rate until the balance is paid in full, opt for a low-interest fixed-rate card instead. A low interest rate of, say, 9.9% over the life of the balance is a lot better than a balance transfer of 0% that jumps up to 22% a few months after you transfer your balance.

5. Get To It

So now that you know what to look for, try to see if you can find some 0% balance transfer no annual fee credit cards that you qualify for. If you can’t, then opt for a low-interest fixed-rate card instead. Then, as your credit improves, try for the 0% balance transfer no annual fee credit cards again.

For more tips on balance transfer credit cards, saving money and avoiding getting taken, check out CreditCardTipsEtc.com, a website that specializes in providing credit card tips, advice and resources.

The Power To Eliminate Credit Card Debt

low — Fri, 18 May 2012 10:49:56 +0000

What it really takes to avoid bankruptcy or having a credit card debt? Do you need only more money? Do you need low interest credit cards? The answer is no and no.The only thing that you need is the power of your mind! It sounds weird doesn’t it? But it is 100 % true.

People who are having problems managing their credit card debt or those who are near in bankruptcy often don’t realize that the power to eliminate their debt troubles totally is in their hands. Today, more and more people need credit debt help badly. The main problem is that these families are having difficult times paying high interest for their debt. And instead of lifting the burden of credit card debt, more people are paying much in interest every month than that of the actual expenditure.

There are actually more lawful and moral ways to zero-out thousands of dollars in credit debts. And if you only take the time to research and know your rights and how bankruptcy laws have changed, you will discover that there are valuable facts to eliminate it. Actually, the possibility of reducing or eliminating the high interest debt is now more possible when a person takes action to get his or her finances back on track.

Apart from knowing your weapon in terminating credit card debt, it is very important that you develop a sense of control and perseverance first. Since credit debt elimination process requires organization, clarity, and commitment to your own growth, it is a must that you are ready for the responsibility and to stand free and independent.Eternal strength and discipline and above all knowledge are all the tools that you will ever need to defeat the debt monster.

For those people who consider having a credit card indispensable but afraid of getting one because of the possibility of credit card debt nightmare, you must remember that credit card can be a powerful tool in managing your finances but there will always be glitches when not used properly. Of course, there are countless reasons why you should and shouldn’t get one depending on your needs. Whether you decide to get one or not, managing finances it still takes a sense of good budgeting, willingness to change spending habits, and the humility to avail low interest consolidation loans when you are already burdened by too much credit card debt.

OK hold on a minute. Like I already said they only thing that you need to deal with the debt monster is the power of your mind. Meaning you need knowledge. Knowledge is power. And when someone gives you this power for FREE there is nothing better than that. You can find loads of info on how to improve your personal finances gathered in one place. It is totally FREE and there is more of it every week. Jack Doe is an ex-credit card debt/mortgage debt owner and he almost DIED because of it. Now he is helping others to get out of debt plus fix their bad credit providing free debt help [http://www.nodebtorbadcredit.com] through his website.

Try And Get The Interest Rate On Your Credit Card Reduced

low — Fri, 18 May 2012 06:30:56 +0000

Anyone that has used a credit card that does not offer 0% interest will know that the APR on these cards can be extremely high, and for those that pay their balance gradually rather than in full each month the interest can really pile up.

Since December the Bank of England has reduced the base rate three times by a total of three quarters of a percent, and a great deal of fuss has been made when mortgage lenders have failed to pass on these base rate cuts, leaving borrowers paying over the odds on their mortgages. There has even been a fuss made when unsecured lenders have failed to pass on the base rate cuts on personal loans for new borrowers. However, little has been mentioned about credit card consumers.

In fact, credit card customers have often had a raw deal, as credit card companies have left interest rates very high even though the base rate has fallen considerably over recent months. One official recently stated: “The Bank of England has trimmed interest rates three times since December 2007. But, despite the cuts, interest charges on outstanding credit-card balances remain disgustingly high.”

However, consumers have been urged to remember that credit card interest rates are negotiable and are not set in stone. This means that those with decent credit may be able to get their credit card interest rate reduced, which could save a significant amount of money in interest.

An industry professional said: “The typical Annual Percentage Rate (APR) on popular credit cards is around 16%, which is over three times higher than the Bank of England base rate. Consumers carry about £64 billion of outstanding credit-card debt, of which three-quarters is interest bearing. This means we are forking out £7.7 billion in annual interest payments – around £250 for every credit-card holder a year.”

He added: “But APRs are not set in stone, and are open to negotiations. Every 1% reduction in APRs represents an extra £74 million that go into consumers’ pockets to ease the credit crunch. It is a fraction of the £50 billion bailout that lenders are grabbing from the Central Bank, which is, after all, our money.”

R. Charlton, award-winning writer, shares her financial expertise as a contributing columnist for Credit Card Comparison Online where you can compare credit cards by low interest rate or by best buy 0% purchase credit card deals

The Facts About Balance Transfer Credit Cards

low — Fri, 18 May 2012 02:13:56 +0000

Credit card debt is one of the hardest financial burdens to overcome, but there are ways to pay down your debt and lower your fees and interest rate charges. Balance transfer credit cards are one such way to consolidate your debt and pay off those high balances. It will take some time and research on your part, but the end results will be worth the effort.

Balance transfer offers used to arrive frequently in the mailbox, but credit card companies are reducing the amount of offers they send because of the current interest rate increases. Interest rate hikes are also responsible for higher fees and charges on your credit cards. However, there are still companies trying to entice customers with lower or 0% credit card balance transfer interest rates for consumers who transfer their credit card balances to them. Before you decide on one particular card to transfer your balance to, you should be aware of the terms, fees, and restrictions tied to that card.

Consumers looking to save money on fees and interest charges should research which company is offering the best deal. A 0% or low APR on balance transfers is one thing you want in a card. Another key item that saves you money are fixed APRs as opposed to variable interest APRs. Fixed APRs will save you money because the rate is guaranteed for a determined amount of time, and is not affected by interest rate increases. Variable interest rates are connected to the current or prime interest rate and will usually result in higher interest rates, which in turn costs you more money in finance charges.

Banks and credit card issuers are in business to make money, and the increase in interest rates has led to record profits from fees and interest charges for these institutions. To avoid being their cash cow, you must choose a card that has low fees and finance charges. As a bonus, look for credit cards that offer rewards programs or cash back, so that you can earn rebates while paying off that balance transfer.

Once you decide on a credit card to transfer your balance to, there are some rules to follow. Don’t respond to every offer you get or apply for several cards, because every inquiry into your credit goes on your file and will affect your credit score. Multiple inquiries make you look desperate for money, and lenders are less likely to see you in a positive light. Also, you may want to keep those old accounts open if you have a good record of paying on time as this shows you have a long credit relationship with that issuer. Finally, don’t be tempted to spend money again now that you have lower rates. Have a game plan to pay off your balance and stick to it. In the end, the goal is to be debt free.

Aubrey Clark

Aubrey Clark is an editor on staff with Credit Card Direct Where you can apply for credit cards instantly.

To reach Aubrey you may email her here.