Cutting Back on Credit Card Debts

By: Reno Charlton

Credit cards have long been a convenient and simple way to make payment for purchases, whether in person, by phone, on via the Internet. Credit cards offer many benefits, from the ease and convenience of being able to make cash free payments to being able to spread repayments on your purchases to increase affordability. However, for many people credit card debt can quickly spiral out of control, and this can result in financial problems and stress.

Many people have more than one credit card - some people have several cards, all of which have high balances and on which they are being charged high rates of interest. This can result in extortionate repayments each month and can involve paying a lot of money in interest until the balances have been cleared. This is why it is important to try and clear your higher interest credit card debts as soon as possible.

One solution to dealing more effectively with your credit card debts is to take out a 0% balance transfer credit card or a low rate life of balance transfer credit card and transfer your higher interest balances on to the new card. This can benefit you in a number of ways. Firstly you will only have one repayment to deal with, which eases financial management and reduces hassle. Secondly, you can enjoy cutting back on the amount of interest that you pay, and could even get away with paying no further interest in some cases. You can also reduce your monthly outgoings by transferring your various credit card balances.

If you transfer your balances onto a 0% balance transfer card you will probably be charged a fee of between two or three percent of the total amount being transferred. If you can then repay the total transferred balance within the interest free period you will be able to get away with paying no further interest. With a low rate life of balance transfer card you will not be charged a fee, but you will enjoy a very low rate of interest for the life of the transferred balance so you are no so restricted in terms of how long you have to repay your balance.

Once you have transferred your balances it is a good idea to close down the high interest rate credit card accounts. If you want to have a credit card on hand to use for emergencies you should apply for a 0% purchase card, as you can then enjoy interest free credit in the event that you do need to use the card.

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