Another downside of these offers is that they are only available to applicants with high credit scores. So if you are in debt, it’s vital that you maintain regular, on-time payments to ensure that your credit score remains high enough to qualify for these valuable offers.
If you decide to open up a credit card with a 0% APR balance transfer offer, it’s also important to use this offer as a way of paying down your debt, not postponing it.
The end of these limited time promotional offers makes for a perfect repayment goal. Furthermore, there is no reason to assume that you will be able to qualify for another balance transfer offer in the future.
Other strategies for quickly reducing debt
Beyond promotional financing opportunities, there are several other ways to pay down your debt sooner. First, it is important to understand that credit card interest is calculated based on your card’s average daily balance. That means that whatever charges or payments occur each day will be used to calculate your interest charges.
Of course, the most important piece of advice is not to pay just the minimum balance each month, but to pay as much as you can afford. But beyond that, it helps to make payments as early as possible. Doing so will immediately reduce your average daily balance, starting on the day the payment is received and credited to your account.
Given the fact that payments immediately reduce your account balance and your future interest charges, there is another strategy that you can use to reduce interest charges. By making multiple payments each month, each payment will have an effect on your balance. For example, you could choose to coordinate payments to your credit card issuer to coincide with your paychecks. So long as the total amount of payments exceed the minimum balance, and are made before the payment due date, it doesn’t matter how many payments you make, or in what amount they are.