The Truth About Credit Cards.com

While some of us may not have trouble paying off our credit card balance(s) in full each month, many others are riddled with debt that is likely to keep rising as finance charges take their toll.

Luckily, there are options to avoid taking on more debt despite holding onto a sizable credit card balance each month.

0% APR Credit Cards

If you’re applying for a new credit card, look for a credit card with 0% APR for at least the first 12 months or longer.

Whether you need it or not, this type of credit card will allow you to carry a balance each month without worrying about accrued interest and finance charges because the introductory interest rate is 0%.

As long as you make the required minimum payment each month you won’t be assessed any finance charges, and your debt will not rise beyond what you purchase each month.

It’s a good way to avoid any unexpected costs associated with your credit card purchases, even if you’re the type that pays everything off on a monthly basis.

Keep in mind that after the introductory period ends, you’ll need to pay off any remaining balance entirely, or be subject to the standard APR which will be much higher than the introductory rate.

Credit Card Balance Transfers

If you’ve already amassed sizable credit card debt that is resulting in costly finance charges each month, consider executing a credit card balance transfer to a 0% APR credit card.

There are a ton of offers out there for 0% APR balance transfers, and you may be able to transfer the debt to one of your existing card issuers without opening a new credit card, just make sure you transfer it to a card with no existing balance to avoid negative payment hierarchy.

The standard APR on many credit cards is in the teens if not higher, so make sure you transfer those debts to a 0% APR or low interest rate credit card immediately to avoid finance charges.

Many consumers continue to pay costly finance charges month after month just because they aren’t familiar with balance transfers, or simply because they aren’t interested in opening another credit card.

If you’re paying finance charges each month, you should really sit down and take a look at your options.

There’s no reason you should be paying interest on credit card debt unless you’ve got no other options, which is probably unlikely.

Tip: Balance transfers typically carry balance transfer fees of 3% up to $75, though there are still some out there with no associated fee.

Make sure you shop around to find the best deal available.