Evaluating 0% Balance Transfer Offers By Elizabeth Williams At Isnare.com Ezine Articles

Good money management is more than just being frugal with your money. It also involves keeping your eye out for opportunities to save more money over the long run with the debt you already have. Using a 0% balance transfer offer on a credit card, for example, can save you hundreds or thousands of dollars in interest expenses.

Balance transfer cards are nothing new, but it's surprising how many people forget that they are a viable option for saving money. People with high interest debts can take advantage of a no-interest promotional offer from credit issuers, and enjoy a set period of no interest repayments. When your entire monthly payment goes toward the principle balance, you'll pay the balances off rather than just paying interest and finance charges.

When evaluating credit cards and the 0% balance transfer offers, here are some points to consider:

Consolidating Balances. You want a card that has enough available credit that you can consolidate all balances from higher interest credit cards onto the new card to receive the benefits of the 0% promotion. Make sure to read the fine print of the offer, to understand how much in fees your transfer(s) will cost you, and whether or not you will still save money on the balances if you transfer the balances and pay a fee. Keep in mind that you will be saving possibly hundreds of dollars on interest charges which should help you pay the balances off much faster than you would have otherwise.

When the Promotion Ends. Like all good things, most 0% balance transfer promotions are only good for a certain period of time before the rate increases. Know what you'll do when the promotion ends – will you have your balances paid off in full at that time? Will you need to begin looking for a lower interest card? Sometimes a credit card with a no interest transfer promotion will have a higher than average interest rate on the remaining balance once the promotion ends and you may want to begin looking for a new transfer offer at that time to avoid paying excessive interest rates. If you can't find another interest free promotion, you might save by using a personal loan to pay the remaining balance off and repay it through the loan at lower interest and finance fees.

Managing the Account. Did you know some balance transfer credit cards also offer 0% apr on new purchases made with the card? Understand whether or not your card offers this on purchases before you start spending. Since the purpose of transferring the higher interest debts is to pay it off faster, try to refrain from new spending! It's great to have a 0% interest option for new purchases though, in the event something comes up.

Consider Offers Carefully Before Choosing One. Because the current economic climate has put the squeeze on these types of cards, it's becoming harder to find no-interest credit card offers. Cards typically have transfer fees and the promotions are limited to twelve months or six months.

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