Credit card debt is often quite insidious because it does not happen overnight. The balance grows slowly over time until one day you realize it is out of control. This happens because credit cards are so convenient to use instead of cash, and often there is no real way to track how much you are spending until it is too late.
Credit cards can be excellent tools if you learn to manage them correctly. However, too many Americans find themselves floating in a mounting sea of minimum payments without an oar. The good news is there are many “hacks” and strategies you can use to regain control over your credit card debt and pay off your credit card. Many of the following tips seem small, but in combination, they can put you back in the financial driver’s seat quickly. If you are wondering how to get out of debt and stay there, read on.
Zero-interest credit cards buy you time to pay off your debt without accumulating more of it. Most credit cards offering zero interest for an introductory time usually offer you at least a year to 18 months before they start to charge you interest fees again. Take advantage of these to pay your credit card off.
Once you have qualified for a zero-interest card, transfer your highest interest credit card balance over to the zero-interest card. Then, cancel the high-interest card for good.
The tendency will be to use it since it is now restored to a zero balance.
Do not fall for this temptation and simply close that account.
The numbers do not lie. Consider that you have decided to pay $250 a month over the span of 24 months on a 2 year, zero-interest credit card. If you do this, you reduce your credit card debt by $6,000. On top of this you avoid the almost $800 of interest fees you would have paid during this time.
One of the key strategies, when you are searching for the perfect zero interest credit card, is to find one whose introductory period is at least a year or more.
Also make sure there is not a significant fee for transferring a balance onto the zero-interest card. If the fee is too high, it may offset any savings you realize from the zero interest feature. Some of the better zero interest cards include Citi Rewards and Wells Fargo Platinum.