A recent article I wrote about learning your credit score received a big response from the readers of this website. Eliminating debt is a big step towards improving your credit rating. One of the factors that determines your credit score is your debt to credit ratio. If you have maxed out your available credit that can damage your credit score. This can cause your creditors to lower your available credit amount and hurt your scorer even more. It can turn into a viscous downward spiral.
Long term credit card debt is one of the worst types of debt you can accumulate. Most credit cards charge an interest rate of around 20%. On a $10,000 credit card balance you are paying $2000+ a year in just interest. That means you could pay 200 bucks a month and almost all of it would go to just servicing the interest. A 0% card is the answer. I have written about the value of switch from a high interest card to a 0% card here.
Millions of Americans are burdened by credit card debt, many of them feel ashamed. Don’t be, when you find yourself faced with a problem the worst thing you can do is nothing. Tackle it head on. One phone call to open a 0% balance transfer credit card a few minutes transferring that balance is the first step to victory. In less then 20 minutes you could be on your way to eliminating that debt.
Here are three cards that I think are excellent options for 0% balance transfers:
- Citi Simplicity Card – No annual fee, a 3% balance transfer fee, 18 months of 0% interest rates on balance transfer fees and purchases. A good option to move your debt over and eliminate it over the course of a year and a half
- The Discover It Card – I have written about this card before. No annual fee, a 3% balance transfer fee, 18 months of 0% rates on balance transfers, 6 month of the same for purchases. This card has many customizable features and benefits that might be very appealing to some customers.
- The Slate card from Chase – This card has no annual fee, but more importantly it has no balance transfer fee. Depending on the size of you debt that could be hundred of dollars in savings. It offers you 0% on balance transfers and purchases for up to 15 months. Card that don’t charge a fee for balance transfers are extremely rare. This could be a great opportunity for the right customer.
It’s up to you to decide which of these cards are best for you situation. Each of us are different. The most important thing is to eliminate the debt. The last thing you want to do is transfer debt over to an interest free card and then continue to rack up more and more debt. If you decide to transfer your debt, it might be best to cut up those high interest card and switch to using a debit card or cash for you purchases going forward.
Eliminate high interest, eliminate debt, eliminate stress, consider 0% balance transfers.