How to Avoid Paying Interest on Your Credit Card Balance for Next 21 Months

A majority of population in America is burdened by high interest rates on credit card balances and it is really taking a heavy toll on individuals. Managing debt has become a very crucial factor for everyone and today Americans are looking for a way out to manage their debt condition.

There is good news for all those who are worried about debt relating to their credit cards. Post February 2012, you can avail zero interest balance transfer on your credit card. It works like this. All your debt relating to credit card can be transferred to a new interest free card thus making yourself free from paying any interest on your starting balance up to 21 months.

The process has dual advantages. Firstly, you don’t have to pay any interest on your debt and secondly, all the money that you pay will actually shrink equally from outstanding amount. This was not the case earlier as a majority of your payment comprised interest, leading to only a part of your debt to shrink. The new policy will surely bring back smiles on everyone’s face.

It will also have direct impact on your credit score, apart from debt ratio. However, before you actually plan to reap in these benefits, there are certain things that need to be considered.

  • Be sure that you’ll be able to pay off your debts in this stipulated period. You’ll have to bear heavy interest rates if you fail to do so.
  • Always choose your period of no interest wisely as it could hold the key for debt clearance.
  • Be sure about the amount due and transfer fees to avoid any surprises.
  • Keep away certain money towards payment so that your debt doesn’t become a burden

The new credit policy also has some bad news in store for you. The new policy means that credit card companies will have liberty to increase interest rates with a prior notice of 45 days. This applies to every borrower. Make use of free online services that help you choose best credit card with zero percent APR.

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