How to Make Credit Debt Disappear Quicker

It’s no surprise that I’m not a huge fan of credit cards. This is mainly because, in the past, I ran up huge balances on them three separate times. As a financial teacher, I have seen a large amount of people entangled in credit card debt and paying huge interest charges. While this is not an ideal situation to be in, there is always HOPE and a way out! So how do you make credit debt disappear quicker? One way is 0% Balance Transfer Credit Cards!

Here’s an example – I recently met a family that had several credit cards. They were paying 7.99% interest all the way up to 22.99% interest. We used the Actual Cost of Debt Calculator to calculate the amount of interest that was being paid each month. It was a ridiculously large number! So I encouraged them to apply for a 0% balance transfer credit card. This type of credit card would ensure that 100% of their payment would go towards reducing the principal. Guess what? They tried it and were approved and the balance was transferred to 0% for 12 months. In just fifteen minutes, they had reduced their interest fees by over $100/month. Over $100/month for fifteen minutes worth of effort is a pretty good paying job! That’s a savings of OVER $1,200 PER YEAR! Now they are working their way to 100% debt freedom even quicker!

Are you paying high interest on a credit card balance? If you are, why not roll over that debt to a 0% interest card so that 100% of your payments will go towards the balance owed? Having trouble finding a 0% balance transfer card? Just click HERE.

If you’ve already switched to a 0% Balance Transfer Credit Card, how much is it saving you every month?

2 Comments

  1. Susan Jannetta on March 21, 2015 at 6:28 am

    I needed braces for my teeth. Insurance paid for part of it. The rest I took out through Care Credit and got 24 months with no interest. It will be paid off soon.



  2. I Was Broke. Now I'm Not. Team on March 26, 2015 at 9:12 am

    Susan, thanks so much for your comment! We’re so fired up that you are working towards living your fully funded life. I would really encourage you to pay off the Care Credit Card in the 24 month, no interest period. If this card is not paid off in the 24 months, you’ll be charged the 14.9% interest going forward. BUT you’ll also be charged interest on the purchase from the purchase date! So not only will you be paying interest moving forward but also you’ll have to pay interest from the 24 month no interest period. That’s a lot of interest added to the credit card! But, YOU CAN DO THIS!! At month 20 or 21, if you don’t feel like you’re going to be able to pay off the card, I’d encourage you to switch to a 0% Balance Transfer Credit Card (ex. Discover It Credit Card). Let me know if you have any additional questions that I can help with! GET FIRED UP!



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