Like most credit card holders I am sure you are carrying a balance on your credit card. Now to most this is a burden that they would not like to think much about. However, this oversight is possibly costing you HUNDREDS of dollars that you COULD BE saving!

One of the most common and easily found credit card offer is the 0% APR. With this type of credit card, significant savings is possible!

Skeptical? Well then read on!

It is best to show this with an example:
Let’s assume you currently owe a balance of $5000 with 14% annual interest rate. This means in 1 year, it will cost you $740 in interest alone. Is this a significant amount to you?

You can easily be saving the money you are spending on interest rate payments!

If you transferred the balance of $5000 to credit card that offered 0% APR balance transfers, you would not be spending the additional $740 for high interest rate payments. Instead, you could use the money to help pay off your debt. In our example it would reduce your balance to $4260 whereas with your previous card you would be owing $5740.

In this example, by switching to a 0 APR credit card, it offered a $1500 difference in the credit card balance and resulted in $224 savings in interest payments until the 0% APR credit card offer expired.

Once the 0% APR offer expires, you should repeat the process and transfer to another credit card offering 0% ARR interest and no fee balance transfers. To accomplish this, you need to be sure that you maintain your credit card score.

Continuing with our example, let’s assume that the credit card offer has just expired leaving me with a $4260 balance. If the interest rate was not reset to 14%, the interest payments would be $636 OR you could repeat the process and transfer to another credit card thereby reducing your debt again to $3624.

Using this method you will save money and reduce your debt.

In this example by using the 0 balance transfers, I saved $1400 and can use that money to reduce my debt payments by $1400. This doesn’t include your usual payment or any additional payments that you could be making. With additional payments, you can help exponentially pay off your dept quickly.

In this example if you added $100 per month in additional payments to the money saved in interest for two years, your dept would be nearly reduced to half ($2600). If I had not taken advantage of the 0% APR, my balance at the end of two years would have been $3700 because of the additional $1,100 in interest expenses.

With this debt management strategy, the $5000 dept would take 4 years to pay off, or sooner if you incorporate additional payments. However if I did not it would have taken 6 years, or even longer if I missed payments.

Hundreds of options are available, and huge savings are potential. It is a matter of thinking longer term and paying attention to the details. Take 5 minutes to compare 0 APR balance transfer credit card applications and start saving money that your are currently spending when you don’t have to.