How To Use Credit Cards Wisely

Never Pay Interest on Your Credit Card Again with This Easy Hack

Elizabeth Aldrich

That’s the dream, right? Pay off your debt without accruing a single cent in interest?

Well, that dream is possible with one simple credit card hack. No, it doesn’t require you to join a cult and sign over your first born or sign any crazy contracts.

All you have to do is be approved for a credit card with a 0% introductory APR on balance transfers and then transfer that debt over and pay it off before the promotion ends.

Of course, it’s not always a fool-proof plan. If don’t correctly, it’s one of the best ways to efficiently pay off debt. If done poorly, it could trap you even deeper in the debt cycle.

What is a Balance Transfer?

A balance transfer is when you transfer your credit card balance from one credit card to another, usually to take advantage of a lower interest rate or better terms and conditions. Many banks now offer a card with a 0% introductory interest rate on balance transfers, which is what you want to aim for. As long as you pay it off before the introductory period ends, you don’t have to pay any interest.

Balance transfers are also a great way to consolidate debt. If you’re paying off debt on three or four different credit cards at once, you’re paying interest on 3 or 4 cards at once, which adds up. Plus, it can be a pain to keep track of. Consolidating the debt by transferring it all to one card will save you time and money.

How Do Balance Transfers Work?

Once you’ve been approved for your balance transfer card of choice, you’ll want to immediately transfer your debts over to this new card. Typically, this can be done online, but you may have to give them a call. It can take a few weeks for the transfer to process.

As soon as a balance shows up on your new card, you want to set up a plan for repayment. The idea is to pay the balance in full before the introductory period ends, so divide the full balance by how many months you have left in the introductory period, and set up automatic monthly payments for that amount. If you have $3,000 in debt and a 12 month introductory period, for example, you’ll want to set your automatic monthly payments to $250.

If you pay off the balance in full by the end of the introductory period, congratulations! You just paid off your debt without incurring any interest fees.

About the author

Elizabeth Aldrich

Elizabeth Aldrich

Elizabeth is a freelance writer and “digital nomad” specializing in small business, entrepreneurship, career advice, real estate, travel, arts, and culture. She’s written for outlets as varied as Rawckus Music and Arts Magazine, Itcher Entertainment, Sweden Tips, Houzz, Hometalk, JobHero, Tico Times, and Eugene Weekly. Thanks to a three-year stint in a travel job, a knack for mining great deals, and credit card churning, she has not paid for a single flight since 2012, despite her constant travels. You can find her on Twitter @LizzieAldrich or her website, www.elizabethaldrich.com.

6 Comments

  • How can you help someone who’s
    Majority of debt is already written off and in collections?

    And what are some solutions to catch up on your HOA Fees when they been set to an Legal Debt Collection Agency, who’ s placed a
    Lien on your Home?

    I have already paid $804.00 towards the Total bill of $1120.00.
    Now there telling me it’s $1120.00,
    Including the attorney fees!
    With this plan I will lose my home!

    I am disabled and struggling to keep this up! I have already sent a letter explaining my situation and emailed & faxed to my Case Manager. My home is only 4 yrs. old, and I was only 3 years behind $600.00 + there Legal Fees!

    So, my request was to pay off my pass due without the Legal Fees. Within two minutes they answered,
    declining my request!

    Can you please send any suggestions to help me keep my Home ?

    Sincerely ,
    Jeanine Thomas

  • I have a question: if you have taken out a consolidation loan and want to take advantage of the 0% by transferring to a credit card can you do this?

  • The big question is why do people even need to rack up such huge debt ? Habits are hard to change. Transfer, sure, but the odds are that the debtor will wind up owing yet another balance sooner than later.

  • have 2/3 cards I would like to transfer to a no/low interest card. unfortunately I cannot get any company to give me a large enough balance to transfer them. their reasoning is that I already have too much debt load…

    • Pay then in small chucks up to what you are allowed at the maximum amount then do another balance transfer. Wash, Rinse, Repeat.

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