Many credit card holders get instant headache when thinking about the high interest rate they have to pay each month. But you know what? There’s one way to get attain debt freedom. The key is to transfer a high-interest balance to another card with a lower rate. In this way, you can save a lot of money.
Be sure to check the time limit involved. Most cards offer only six to nine months and then return to the traditional rate which is normally around 16 percent. If you’re not clear about the charge, call and ask about it.
Learn the coverage of the zero or low interest offer. Many credit cards charge the low rate only for balances moved from other cards. If you find out, for instance, that new purchases on your new card will get higher interest rates, of course you should avoid using the card.
Be aware of other fees charged when you transfer your balance. Some cards charge transfer fees of about four percent.
Make it a point to always pay on time because once you’re late, the zero interest rate will vanish. Another late payment and your interest may further rise.
