January 3, 2006

Saving cash on the credit card is an all to thought on our minds and if it isn’t then it should be.

One of the easiest and quickest methods to do so is with a Balance Transfer. By simply moving your debt from one credit card that is charging you a monthly interest charge, to one that is offering a 0% interest free period that can save you hundreds of pounds in the period in which the 0% deal lasts.

You may think that this is not a great deal of money at first glance and may hardly be worth the trouble, if so you are either a wealthy person or someone who should not be let loose with a credit card.

This saving will mean that you are not only saving a few hundred pounds within the 0% period, it also means that the saving that you have made can go back in to reducing the debt that you have on the credit card, before the card reverts to the standard APR that the credit card will charge you after the 0% deal is over.

When you are looking to do a Balance Transfer, do your homework and try and find a credit card that is not only offering you the best deal and length of time in which you can take advantage of the 0% period, but also make sure that you check out the APR that the card has after the introductory period, if it is a lot higher than the card that you are leaving, then moving from the original card may be advantageous during the initial period, but could soon see you back to where you were, if not in a worse financial position that you found yourself originally, when the APR kicks in.

When going for the Balance Transfer, there is something that I cannot stress highly enough and that is to make sure that you meet all of your payments on time. Even if you find that you are feeling the pinch a little one month, then make sure that the minimum payment is met and don’t feel that you are letting yourself down by only paying this amount, you aren’t because you could be letting yourself down even further if you don’t pay at all.

By not meeting one monthly payment could see you undo all of the work that you have done to try and reduce your debt, as many credit card companies will take away your 0% deal as quick as they gave you it and add the interest payments from the moment that you received your credit card and some are even as strict as to do this if you even make a payment, but the payment arrives late.