0% Credit Cards – How Can YOU Benefit from Them?
The practice of chasing 0% credit cards has been around for a while now. Let’s face it, if you could guarantee continual use of credit cards without paying interest you too would jump from one card to the next.
0% credit cards are as popular today as when they first appeared a few years ago and even during these harsh economic times credit card usage and the pursuit of these deals is continually increasing with massive increases in the past 5 years alone.
How much of the blame for the current global financial crisis can be placed upon the over use of credit cards no one actually can say but it cannot have been helpful!
The sub prime mortgage is usually linked to as the catalyst of all of the financial woe we are experiencing today but one thing is for sure, if we were not so heavily in debt with our credit cards we would have all been in a better position to deal with the current situation.
0% credit cards are an ideal solution to credit card debt and can be used in two ways.
How best to use 0% credit cards offers
There are two ways to use these types of deal the first is to use them as a quick fix plan which will allow you to lower your monthly repayments and the other option is a long term strategy that will eliminate your credit card debt much quicker, in fact, many years ahead of schedule.
The quick fix will help you out of an immediate hole: If you are struggling to make your monthly repayments 0% credit cards will help to reduce the minimum monthly bill drastically as you will no longer be paying interest on your balance.
Although this may seem like music to the ears of many it is only really of use to those trying to avoid damaging their credit score as you are less likely to miss payments, the down side is that if you only make the minimum payments required by the card provider your balance will only come down very slowly, very slowly indeed.
The method referred to as the long term strategy does not benefit you initially, and if you utilize these offers to their highest potential you will actually need to be paying more off your outstanding balance than you were previously!
In other words, the best way to utilize zero interest deals is to pay as much as you can possibly afford whilst the offer is available to you; by doing so every cent you pay will be going towards clearing your debt rather than lining the pockets of the credit card companies, you will literally save thousands in interest payments and shorten the life of your credit debt drastically, not to mention improve your credit score by doing so.
Can I Switch to another 0% Credit Card once my current offer expires?
There are many who believe that this type of deal can be used indefinitely, jumping from one offer that is closing to a fresh new deal with another card supplier and therefore maintaining an ongoing zero interest credit card.
Unfortunately, although it may be possible to switch two or maybe three times anything beyond that now seems to get flagged by the credit card companies resulting in declined applications, and this is even for those of us who have a very good or high credit score.
The advice I would give is to keep utilizing these offers until you have your first application declined then stay put for a little while before seeking another deal.
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There are many pitfalls and things you need to be aware of when you start to use 0% credit cards and many of them are covered at www.creditcardconsolidationloanssite.com ;www.consolidatecreditdebtnow.com ; and www.debtconsolidationinformationonline.com