Saving Money Paying Off Debt - 0% APR Balance Transfer Credit Card

How much money you are spending every month carrying balance on your credit card. I read somewhere that if you make only minimum payment it will take you at least 7 years to pay off 2000 dollars !! You are just paying interest most of the time. This money can be very well used some where else.

Monthly Payment: Pay more than minimum required payment. So that you make sure you are paying something toward bringing down principle and not just paying interest.

Balance Transfer: Using 0% APR balance transfer credit card is another good thing. Search on Internet and you will find many card with 0% Balance Transfer APR, no yearly fee and maximum 75 dollar balance transfer charge. (There are some that charge as much as 300 dollars. You do want to avoid them.) Usually they provide this rate for 6 to 12 months. Once this term ends interest rates do shoot up. You do want to make sure that this new interest rate is not higher than your current credit card. Or you may just want to move your balance on another card after the end of the free term.

We have a friend who used this card to pay off almost 10000 dollars debt without paying almost nothing in interest.

Lower Interest Rate: If have been paying regularly and not been late, you may also work with your credit card company to lower the interest rate. That could slash your interest payment as much as 50%.