With all the offerings available through a credit card company, it's not hard to quickly become overwhelmed with all the information out there.
Managing your credit can also quickly get out of control when you don't understand what the fine print means.
If you are looking into 0 balance transfer cards, it's especially important to know exactly what this tool has to offer and how you can use it to your advantage.
These cards can be a valuable part of managing your credit, but they can also quickly get out of control if you don't know what to look for.
Whether you run a business or just have personal responsibilities, using a balance transfer card can be a good strategy for you.
If you have a significant, but manageable amount of debt on one or more credit cards and are paying a high interest rate, 0 balance transfer cards can help you to consolidate that debt and give you a grace period where you can pay down the debt without paying any interest at all.
Keep in mind, however that the intro rate isn't fixed.
You can expect the grace period of paying no interest to last anywhere from three months to twelve months.
When planning to transfer a balance to consolidate debt, be sure that you understand completely what the terms are.
Most cards will automatically revert to the normal APR if you miss a payment or otherwise breach your agreement.
Most companies handle balance transfers in similar ways.
You must first be approved for the new card.
The company will then take the information on the card or cards that you are transferring a balance from.
They will pay the outstanding balance, moving that amount to your 0 balance transfer cards.
There can a lull in the meantime, however, so make sure you don't inadvertently miss a payment in the process.
Many companies will charge a fee to complete the transfer.
You will then be under the terms of the new card.
Some companies will state that a minimum payment will need to be made during the grace period, while other terms will allow no payments and no interest until the time is up.
However, when you use the card as a strategy to eliminate debt, you should always pay as much as you can each month.
Every penny you spend during this time will be applied directly to the principle, so don't waste it.
Also be aware that most new purchases will not fall under the zero interest terms, so avoid using the available credit line.
It can be very tempting to use your 0 balance transfer cards as a crutch.
With poor financial management, it can be a very appealing way to make your credit card debt disappear, if only for a time.
In short, don't do it.
Once the terms are up, your problem will return in full force and may even get worse.
Balance transfers can be a very good strategy to manage and eliminate debt, but they should always be used in partnership with a well thought out plan.