If you haven't been credit card shopping recently, you'd be
amazed at the variety offered today. In addition to the
different interest rates, the extent of rewards or perks offered
is vast. There are cards offered to fit everyone's needs. Good
credit, bad credit, in between, 0% APR introductory offers, sky
miles, cash back,... just to name a few.
Of course the financial experts would tell you to watch that
credit card debt, pay off the balance every month so you don't
have to pay interest. If you do have high balances the experts
would also tell you to take out a loan on your home so you could
get a lower interest rate and tax advantage too. But that's not
always realistic or possible for some. Perhaps they just bought
their first home and the equity is limited. There could be a
number of reasons why the professional financial advice just
won't work. So what to do?
What if you just purchased your first home and your credit cards
had balances with interest being accrued each month? Then say
you like to travel, but you have these bills. Could you plan a
trip in the not too distant future? I believe you could.
Most of the credit card companies today have 0% APR introductory
offers. This rate is good for six to twelve months and many
times is valid for balance transfers and purchases. In addition,
many offer rewards such as air miles.
First figure out the most you could pay each month on these
accounts combined. Apply for a card that offers 0% APR for
twelve months and transfer the balances that are accruing
interest to this new account. Now remember, you're saving
interest each month. Then you could use the credit card as much
as possible for daily expenses, keeping track of and setting
that amount aside each day. At the end of the month, you should
pay the amount determined which you could afford on the balance
transferred and then pay the entire amount charged for the
monthly expenses.
By doing this, you would be paying off the older balance with a
0% interest rate and earning rewards at the same time. At the
end of the twelve months you may very well have enough points to
take that planned trip. Your credit card balance should be paid
off almost completely.
When things seem out of reach, you can achieve them, as long as
you have a plan.
About the author:
Bradley Carson is an internet marketer.
http://cards-king.com/
