How to Get Rid of Your Credit Card Debt Interest

in hive-167922 •  8 days ago 

It seems that among the many types of debt, those acquired through credit cards are the hardest to get out of. The reason for this is the high interest rate that seem to add more into the current balance of the debtor. Whenever you send payments to your creditors, a huge portion of that amount is only going to interest rate payments. If you stick to the minimum payment of your cards, you are barely putting a dent on the actual debt that you owe.

This is why the concept of removing the interest rate on credit card debt seem like a very good idea. Although it is not really advertised as a debt relief program, balance transfer cards can be an effective debt solution.

The whole idea of this debt relief alternative is you get your credit card debt and you transfer it to a new card that offers zero interest on your starting balance. It is literally called a zero interest balance transfer card. You can choose to transfer all your credit card debt or only the accounts with the highest interest rates.

These balance transfer cards usually offer zero interest for at least 6 months. The government mandated card companies to make sure that the period does not go lower than that. In fact, it can even go as long as 21 months of zero interest privileges. If you are lucky enough to stumble upon such an offer, you can pay off a huge portion of your debt in less than two years.

The great thing about this debt solution is it does not have a big effect on your credit score. If it has, you can expect it to be very minimal. As soon as you start paying off the balance on the new card, your credit score will start to improve.

Of course, there is a catch to this seemingly good offer. You need to ask the card company for any upfront fees. The amount is usually a percentage of the debt that you will transfer. Not only that, the zero interest period has an ending. You need to check when the promo will end because there are ridiculously high interest rates after. Make sure that you have a payment plan that will allow you to take advantage of the zero interest period.

More than anything, you need to learn how to curb your spending habits - especially those done with your credit card. Learn your lesson and try not to acquire more debt on the cards that you just cleared out after transferring balances.

Posted Using LeoFinance

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