If you haven't looked for a credit card in a while, you'd be surprised by how many different kinds there are now. Not only are there different interest rates, but there are also a lot of different rewards or perks. There are different kinds of cards for everyone. Good credit, bad credit, somewhere in between, introductory 0% APR offers, sky miles, cash back, to name just a few.
Experts in money would tell you to keep an eye on your credit card debt and pay off the balance every month so you don't have to worry about...
If you haven't looked for a credit card in a while, you'd be surprised by how many different kinds there are now. Not only are there different interest rates, but there are also a lot of different rewards or perks. There are different kinds of cards for everyone. Good credit, bad credit, somewhere in between, introductory 0% APR offers, sky miles, cash back, to name just a few.
Financial experts would tell you to keep an eye on your credit card debt and pay off the balance every month to avoid paying interest. If you have a lot of debt, experts would also tell you to borrow against your home to get a lower interest rate and a tax break. But that's not always possible or realistic. Maybe they just bought their first home and haven't put much money into it yet. There are many reasons why the financial advice from a professional might not work. So what should we do?
What if you just bought your first home, but you still owe money on your credit cards and interest is being added each month? Then let's say you like to travel but have a lot of bills to pay. Could you make plans for a trip in the next few months? I think that you could.
Most credit card companies today offer introductory rates of 0% APR. This rate is usually good for six to twelve months and can be used for purchases and balance transfers. Also, many of them offer perks like air miles.
First, add up how much you can pay each month on all of these accounts. Apply for a credit card with a 0% APR for a year, and then move your interest-bearing balances to this new account. Now, keep in mind that each month you are saving interest. Then you could use the credit card as much as possible for daily expenses, keeping track of how much you spent and putting that amount aside each day. At the end of the month, you should pay the amount you could afford on the transferred balance and then pay the full amount charged for the monthly expenses.
By doing this, you would pay off the older balance with no interest and earn rewards at the same time. At the end of a year, you might have earned enough points to go on that trip. Almost all of the balance on your credit card should be paid off.
You can do things that seem impossible as long as you have a plan.
