Clearing debt is never simple but one method is to use 0% Credit card balance transfers. Most credit cards have an initial transfer rate of 0% that means that once you’ve paid the initial arrangement charge you incur no other charges providing you repay the balance or transfer the remaining balance elsewhere before the end of the 0% period.
Another significant benefit of repaying debt using a credit card balance transfer is you can change the sum you repay each month to suit your budget. You should always try to repay as much as you can afford so the balance reduces quicker but paying less in certain months is an available option. You may choose to pay less in a month if you require the money for other things.
You should attempt to sort your debts to repay the most expensive debt first. You should be able to find a credit card company offering a 0% introductory rate and transfer as much debt as is possible to it. You can then focus on repaying your higher interest debts first ensuring you pay less in the longer term.
In order to not incur additional charges you should remember a number of critical points when repaying your credit card balance transfer. The first rule is to always pay at least the minimum figure due on time to the credit card company. Failing to make your minimum payment will most probably incur extra charges and possibly end your introductory rate which will then make this type of debt much more expensive. Always make payments before the due date as late payments will also incur charges and may result in difficulty in obtaining credit in the future. If a late payment is unavoidable telephone your credit card company before the payment is due and clarify your reasons for the late payment.
Another critical rule is to prioritize your highest interest debts first. If you have additional credit at a higher rate of interest that is more expensive you should repay this first to reduce the overall amount you repay. After you have repaid higher interest credit then go onto the next highest interest and so on until you are no longer in debt.
Try to repay as as much as is possible each month from your balance transfer amount. Credit card introductory rates do not last very long and the sooner the debt is cleared the better. Don’t buy additional items with the card as these will be charged at a higher interest than the balance transfer and it will add to the amount you have to repay.
Try to get a card with the longest introductory period available and make a note of the expiry date. As the date comes closer look for another card company to transfer any remaining debt to. Look at any current cards you have as these may have special offers available. If you get turned down simply apply to a different company offering introductory balance transfer rates. Transfer any outstanding balance automatically and then ruin your ancient card so you cannot spend on it. You’ll incur a transfer fee for the new card but this will nearly certainly be less than the interest on your existing card.
Set a budget and stay away from simple credit to buy things. Any additional items bought using credit cards will have to be paid for or hard bankruptcy procedures will happen that will affect your finances for years. Using credit card balance transfers it is possible to remove your debts. If you set a budget and give yourself enough time and avoid buying new items with simple credit you will eventually be debt free. I was burdened by debt for years before knuckling down and clearing them.