Credit card debt is probably the most costly debt there is. This is because the interest rate is really high, so it tends to grow pretty quickly. But there’s a way for you to get out of it.
If you read that you could use a credit card to get out of a credit card debt, you’d probably think that it doesn’t make any sense. And for a lot of reasons you would be right, but what if there was an actual way of using a credit card to get out of another credit card’s debt? Well, keep reading.
Balance transfer cards
You can move an outstanding debt on one credit card into a new one. That is a balance transfer. Most new credit cards offer 0% APR for 12 to 21 months, which means you won’t pay any interest if you transfer your balance during that period.
However, some cards charge you a balance transfer fee that is usually around 3% to 5% of the balance amount you are to transfer. But even if that is the case, it is still a better option because the 0% APR makes it a lot easier to pay it off.
There are many options for you to choose from, and each of them has their own initial benefit pack, so make sure you take a look around and compare what each card offers before you settle for one. Also, there are some that even have rewards programs and consumer protection, so take the time you need to gather information.
If possible, try to find cards that don’t charge a transfer fee. Although most of them do, some will give you a grace period of up to 60 days. So, if you transfer the balance during that period, they will waive that fee.
Don’t use credit cards
Once you get a new card make good use of the 0% APR for a limited period of time, do not use it to purchase things. Always keep in mind that the idea of getting a new card was to pay off your debt. During your pay-repayment plan, stick to your budget and use debit instead of credit.