A Simple Way to Eliminate Credit Card Debt

There are a ton of different ways to eliminate credit card debt. And a ton of companies out there offering to “help you.”

But many of these services generally require you to pay a fee or miss your minimum payments before receiving assistance.

So before resorting to such extreme measures, consider a simple balance transfer credit card.

A balance transfer credit card works just like how it sounds – you move a credit card balance from one card to another.

In other words, if you’ve got a sizable credit card balance on one card with a high interest rate, you can move it to another credit card with a lower APR.

The idea is to save yourself money by paying fewer finance charges, which should ideally allow you to eliminate the credit card debt faster.

Let’s look at an example:

Current credit card debt: $10,000
Current credit card APR: 19.99%
Monthly finance charges: $167

In the scenario above, you’d be subject to roughly $167 in finance charges every month if you held a $10,000 balance on your credit card(s) with 19.99% APR.

Clearly you don’t want to keep throwing away that much money every month. After all, it doesn’t leave much leftover to actually eliminate the debt.

That’s where a balance transfer offer could come in handy. Most have promotional 0% APR for 12 months or longer, while others offer a low fixed rate for the life of the balance.

So instead of paying hundreds in finance charges each month, you could avoid them altogether or pay very little and instead use your money to actually pay down the balances themselves.

This simple method, which doesn’t require you to sign up for a service or pay any odd fees (aside from balance transfer fees, if applicable) is a much safer and easier method than others out there.

Keep in mind that balance transfers typically require a good credit score, so make sure your credit score is up to snuff before applying for a balance transfer credit card.