How can an interest free credit card save you some money?
When owning a credit card, there are times that we spent more than what we should.
At this point, many will be thinking of the best way to settle the accumulated debt in a more favorable manner.
An analysis was conducted recently by a comparison site that reveals you can actually save great amount of money by simply moving the balances of your credit cards to the zero-percent credit card deal.
How do you go about the Interest free Credit Card deal?
If you already reach the point that you cannot afford paying your card debt in one settlement, then your best option is to move the balance through balance transfer credit card.
Here is how to do it, assuming your credit card have $3,000 debt balance, all you need to do is move or transfer the balance to interest free credit card.
What will happen is that you will be paying $125 every month for twenty-four months without any interest.
This is far better deal than keeping the debt balance under your existing credit card that has an average interest rate of 18.40% APR.
With the existing credit card, you will be paying an approximate amount of $702 extra over the period of twenty-four months over and above the $125 monthly payment.
With the above illustration, you can see that hundreds of dollars can be saved in interest if you chose to move the debt balance to an interest free credit card.
In addition, you can actually compare the latest card offers using website’s price comparison.
Additional Information on the Zero-percent Credit Card deal
In order to ensure that you are able to take advantage of the zero-interest period, you have to provide a budget accordingly.
Meaning, if your debt balance is $2,500, and you adopt the interest free credit card for twenty-four months, you have to prepare paying $105 per month religiously to make sure that the interest free period will not expire.
Another thing to remember, when you decided to take advantage of the long-term balance transfer card, you should not miss a single payment.
The moment that you missed out payment, you are going to lose the promotional deal.
In order to ensure that your payment will always be on time, it is a brilliant idea to put up a direct payment arrangement.
However, by any chance you are not capable of paying the monthly payment religiously over the promotion period; it is more advantageous to opt for a personal loan instead.
Just remember also that you can choose the best deal by using comparison sites.
With the personal loan, you can fix the repayment of your loan over a longer period. It can be that you can have a lesser monthly payment, but you are exposed of paying back a higher amount because of the interest.
So, it is great news for you to have an option of transferring your credit card debt to interest free credit card, in order to save money.