This article talks about how the best credit cards for balance transfers can help you get out of debt.
If you really want to get out of debt, you should think about getting a balance transfer credit card. You can get your finances back on track and back in your hands with the help of balance transfer cards.
The Stone-Cold Facts
The average American household has more than $9,000 in revolving debt, which is mostly credit card debt. If you're one of them, it's good to know that you're not the only one. At the same time, don't get too used to things. When you have debt, you have to pay bills and, most of the time, finance charges. In the end, owing money costs you money. Balance transfer credit cards and a few other easy steps can help you get out of debt and stop paying high interest fees.
Don't spend more than you can afford.
Stop spending more than you can afford. This is the first step to getting out of debt. Clearly, if you spend more than you can afford to pay back, you will only get deeper in debt. Also, if you already have a lot of debt, you need to spend as little as possible. After all, you want to get out of debt, not add more to it.
Setting up a budget is a good way to make sure you don't spend more than you can afford. Many people find it hard to cut back on spending because credit cards have made it so easy to get things. But when you sit down to make a budget, you might be surprised to see how much you waste without even thinking about it. In fact, it's likely that you can cut some costs without even noticing. You will still need to save money for regular costs like rent or a mortgage, food, and insurance. You can also save some "play money," but don't spend more than you have saved.
Put away the plastic.
After you've paid off your debts with your balance transfer credit card, put it away. First of all, credit cards with balance transfers usually have a high APR on purchases made outside of the transfer. Still, the credit card company has to find a way to make up for the loss. Second, having your credit card with you makes it harder to avoid temptation and buy things on the spot. Instead, use cash as much as you can. When they use a credit card, many people don't really think about how much money they are spending. But when you count out your money and watch it leave your hands and go into the cashier's, you really notice it.
In fact, research has shown that when people pay with a credit card instead of cash, they spend an average of 112% more than when they pay with cash. With this kind of information, it's not surprising that most stores accept credit cards and even try to get people to use them.
Keep an eye on the interest rate
If you have to use a credit card and keep a balance, make sure the interest rate is low. If the interest rate on purchases with your balance transfer credit card is high, put it away and use a different card every day. When you use a credit card with a lower interest rate, you can save a lot of money. In fact, you can save hundreds of dollars every year. Then, make sure to put the money you save toward paying off your debt. When you have no more debt, the small things you had to give up to get there will have been worth it.
