When planning out your debt, keep in mind that there are many different loan providers out there. There are also many different credit card companies out there. This is very important to note because there are many credit card companies that compete with each other so fiercely that they offer zero interest periods.
Pay attention to these programs. Some programs last only a couple of months while other programs can actually last years. Look for very generous zero interest rate programs and look into stringing them together. If you play your cards right and everything is lined up correctly, you might be able to push your balance transfers from one zero interest card to the next, and use all this time to pay down your debt.
You’re basically getting a freebie. In normal circumstances, you have to pay the interest rate as you pay off this debt. It’s unavoidable. But thanks to these zero interest programs, you can pay down your debt pretty efficiently. You don’t have to worry about interest rates because there is none.
If you’re thinking of using this technique to get out from under a mountain of debt, use the following tips.
It used to be that you were at the mercy of the mailers you get regarding zero interest rate cards. If you’re on the right mailing list, you would get the right offers for such zero interest cards. The internet has changed all that. Now, you can look for the cards instead of them looking for you. This gives you a tremendous range of options. You can see a huge variety, in terms of fine print details, from credit card to credit card.
Look at the fine print. Make sure that the fees are not exploding fees. Make sure the fees don’t bite you on the backside if you miss a payment. This is how many credit card companies make their money. They switch from making money from interest to fees. So pay careful attention to any such shenanigans.
Now, it’s really important to make sure that when you are pushing your balance transfer from one zero interest rate card to another, you time it properly. If you wait till the last month, this might be too late. You might actually end up paying interest once the new month rolls around.
It’s much better to transfer your balance as early as three months before the card expires. This way, there’s always a time cushion and you’re not pushing the envelope. If you have enough zero interest cards with zero fees, then you can keep this credit card shuffle going for a long time until you retire your credit card debt.
Make sure you time this right. Or else you might actually get into more problems. You might end up creating more problems than you are ‘solving.’ Beware. It is too easy to screw up. Consider yourself warned.