Reducing Your Debt
We always hear of credit cards that claim to help reduce debts via possible savings on interest. How does that work? If you are making
minimum payments, it is quite an advantage if the remaining balance from your credit will not incur a high amount of interest. That´s why
it might be a good idea to transfer balances from high interest cards to 0% interest rates. On the other hand, it still really
depends upon the credit card company´s offer. What seems like a good idea may not be a good idea after all. A lesser interest rate can make
the payment of your debt easier and, consequently, faster since your payment goes to the actual debt and not on the payment of the accumulated
interest. Therefore, your debt is reduced significantly. What should you take into consideration if you are faced with the decision? Read on...
|
Let´s take for example Blue from American Express®. Blue is an extraordinary rewards plan with ground-breaking advantages sponsored by
American Express. You are not expected to pay any annual fee and what´s most important and pertinent in this article is that it has VERY LOW
INTEREST RATES. The card offers a 0% introductory rate for about 15 months. On balance transfers, an introductory rate of
4.99% may be availed of for the life of the loan. The balance transfer introductory rate may be awarded to card
holders who start a transfer during application for the card. As a result, qualified applicants for the lowest rate offered and those who plan to
avail of the additional benefits and discounts offered by American Express® will gain most from what the Blue from American Express®
card has put forward.
|   Blue from American Express® Currently this card is not available for online application |
 Bank of America Cash Rewards Platinum Plus® MasterCard® Credit Card Currently this card is not available for online application |
Another credit card worth mentioning is the Bank of America Cash Rewards Platinum Plus® MasterCard® Credit Card.
Its key feature is a 0% interest rate for transfer of balances from high interest credit cards. After the first 15 billing cycles,
such introductory interest rate will change into a low 9.99%. Hence, those qualified cardholders who are not expecting any unusual benefits or services, and
plan to avail of the 0% introductory rate will gain most from the Bank of America Cash Rewards Platinum Plus® MasterCard® Credit Card.
|
|
Last of the examples is the Citi CashReturns(SM) Card. Its key feature is somewhat similar to the earlier
mentioned credit cards: if you transfer balances from high interest credit cards to this card, you may avail of a 0% interest rate for the
first 12 months. After 12 months, a very low APR of 9.99% may be availed of. Not only do you have an opportunity to save on interest with
this low APR credit card, but you also have a very attractive reward program, where a cash back of 1% is given on every purchase. After the
first 12 months you will also receive a 20% bonus on all the cash back earned for this period. Your cash back check will be automatically
mailed to you every time you earn $50 in cash back. By taking advantage of the low APR for this credit card, and using the cash back check
towards your credit card balances, the Citi CashReturn(SM) Card will get you one step closer to eliminating your debt.
|  Citi CashReturns(SM) Card Currently this card is not available for online application |
It is imperative that you understand the details of such lower interest rates. You have to know if they are permanent, introductory or temporary.
If they are permanent, then I don´t see any problem. However, if they are merely introductory or temporary, it means that the rates will increase
after a certain period of time. This means that you should plan your purchase around the period stated if you want to take advantage of the low
interest rates.