Docstoc

Balance Transfer Credit Card (PDF download)

Document Sample
Balance Transfer Credit Card (PDF download) Powered By Docstoc
					Title:
Balance Transfer Credit Card


Word Count:
409


Summary:
Would you like to find a way to save more than $1000 to $1400 this year? If you are one of the American
households that has $ 8000 or more in credit card debt, your answer could be a balance transfer credit card.


For most credit cards, the minimum payment due each month barely covers the interest. It could take you
years to pay off that balance and with payments totaling at least twice the original amount billed.
Substituting a higher interest credit card with a lower inte...



Keywords:




Article Body:
Would you like to find a way to save more than $1000 to $1400 this year? If you are one of the American
households that has $ 8000 or more in credit card debt, your answer could be a balance transfer credit card.


For most credit cards, the minimum payment due each month barely covers the interest. It could take you
years to pay off that balance and with payments totaling at least twice the original amount billed.
Substituting a higher interest credit card with a lower interest card with a 0% APR introductory offer for the
first twelve months makes perfect sense. If you take the time to compare balance transfer credit card offers
and figure out a payment strategy, you could significantly lower your credit card debt, interest free.


Many of the balance transfer credit card offers include a transfer fee, either a minimum of $50 up to 3%.
You need to take this into consideration when computing your savings.


Of course the best strategy would be with the intention of having the full balance paid off by the end of the
introductory period so you could be debt free. But if that is not possible, by paying what the minimum was
previously, estimating $125 per month, add an additional $50 to $75 each month, you could still have a good
portion of that balance paid down and save yourself over $1000 in a year. If at the end of the 0%
introductory period, the new balance transfer credit card offers a lower rate than your present card, you’re
still a winner.


Now there are a few things to remember when you’re playing this trading credit card game. If the purpose is
to lower your debt, don’t continue to use the old credit card. After a few months you might want to cancel it.
Another thing to think about if you are planning on applying for another balance transfer credit card with a
0% APR introductory period when this card is twelve months old, that each credit inquiry effects your credit
score. So try to keep switching credit cards to a minimum.


Applying for a balance transfer credit card can be effective if you have the right plan and stick to it. You can
be on your road to be debt free and rather than pay interest to the bank, pay yourself. Think of how much
you could accumulate if you were able to put that $125 to $200 each month into an interest bearing account
that pays you!




credit disputes letters

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:2
posted:1/4/2012
language:
pages:2
hashournonos hashournonos
About