Be Smart to Eliminate Your Debt With the Zero Per Cent APR Credit Card

By Chintamani Abhyankar

It has started as a gimmick of marketing but now it has become a regular practice for most of the credit card issuers in US. Almost all of them offer these zero per cent APR credit cards to attract customers.

If you are in heavy debt, it becomes harder and harder to act as come out of that trap. The heavy interest kills the possibilities of clearing the balance on your credit cards. Look out for such offer and bring back your financial house in order.

APR is the Annual Percentage Rate. It reflects the cost of credit offered to you. Naturally low APR means lower interest charged to you. Zero per cent APR means no interest will be charged to you. The period of Zero per cent APR ranges from six months to one year. This provides much needed breathing time for you to come out of the clutches of debt.

The first step will be transfer of balance from all of your credit cards to the one offering such facility. You need not worry about this as the offering company will complete all the formalities. Just sign up and they will do the rest. Then you will have an opportunity to get rid of this balance.

If you are honestly thinking of rebuilding your credit, go for it without any doubt. Pay the balance within this time and repair your credit history.

But things are not that simple. The card issuers are ultimately working for profit and they are not offering interest free loan to you just like that. There will be always fine print in all such offers. If you are paying your debt regularly, things will go smoothly. However, if you are late in payment any time, there will be heavy fees for late payment. If you make a default, by default rate of interest will come into play. This rate may be higher than the normal interest rate! The card issuer may charge annual fee ranging from $15 to $50 for such customers. Finally, the solution may not work and you may be worse than what you were.

You have to be smart for taking this challenge. First make a real assessment of your financial situation to find out how you are going to clear the balance. Once you fix the strategy, always make it a point to stick to it. Avoid making further additions to your credit card balance as far as possible. Pay all installments in time. If you are thinking of taking this offer only as a way to keep up the credit card debts, it may lead to disaster. Take the hints and act honestly to save the situation.

Getting the shining plastic is an exciting moment for you. However, when you start flashing this card too much, you may be heading towards more and more debt. How to come out of it? There is a way out. But you have to go carefully. Chintamani Abhyankar provides useful tips and advice on zero per cent APR card offers in this article.

Chintamani Abhyankar, is an expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and tips on personal finance.