Smart Way to Pay Off Credit Cards and save money!

Pay Off Credit Cards

There are many ways to pay off your credit card! Good news is, you can outsmart to pay off credit cards debt with simple step and easy to implement! I am not saying it would be easy, but if you follow my direction, most of the time, it can save money a lot for long run! 🙂 first of all, I assuming, you have a few credit cards or maybe a lot! from department store credit cads, retail store, jewelry or maybe gas station and etc! if you have a lot, my suggestion is, try to pay all your credit cards and focus only to 1 card!

if you just focus to one cards, it will make your debt more manageable and less cost! because all you have to do is just pay to one cards, and that’s it! it can save more money! e.g no annual fee, no administration fee, this, that and etc! but if you have a lot of card to handle, believe it or not, you’ll having a lot of trouble to pay all of them, and not to mention that every cards will cost you annual fee and have different interest rate or APR! and to be honest APR, actually the tricky part, if you dealing with debt! the reason simply because, if you not pay your debt as soon as possible, your APR will be valid ! but if you pay your debt fast, your debt interest rate will be less painful! 🙂

Because sometime, one card have APR up to 25% so imagine if your debt about $10.000! in a year you have to pay $12500 to credit card company! but if you pay off your debt less than a month! or before grace period ended, they will not charge any interest rates! but of course I do realize, you can’t pay all your debt! in less a month! and that’s why if you just focus in single card you can save hundreds dollar!

The implementation is, you must find credit cards company, that offer intro APR 0%, for 12 or 21 month! and if you can pay off your debt less than a year! you can save a lot of money! it could be hundreds dollar or even thousand of dollar! the reason why you save money simply because, your APR from 25% go to 0%! though doing this doesn’t mean that company will not charging you any fee! 🙂 because most credit card company actually know, and realize there are some people that want to save money and using this method to save hundred or even thousand dollar! that’s why they will charge you a fee for transfer balance!

and the fee are about 3% to 5%!  for me personally paying 3-5% fee , I think its quite fair, since they will handle and do the transfer to pay all our credit card debt! most company already know, so all you have to do is tell them! you want their card, because you need to transfer all your debt into one cards ! I am sure, they know what to do!  and most of the time, they will tell you they will charge a fee about 3-5% for balance transfer!

Some credit card company sometime will give you less limit, and if their limit are not enough to cover all your debt, try to focus on credit card that have the highest APR! because most likely this kind of cards, will be a problems in future! and that’s why most credit cards site always give suggestion, when choose credit card don’t get distract with reward! instead, focus to APR! because most people that having problems with credit card debt, the culprit are APR! so from now on! get rid credit cards that have high APR! and that’s it! your life will be much more easier

Is there any company that offer 0% fee for transfer balance ? Good question ? yes, there is! but  for most commercial company such as bank, or credit company most of the time they will have a fee! but for non profit such as, Credit union, some of them will not charging you any fee! though it’s very rare for credit union credit card that offering intro APR 0%! so basically by choosing credit union for debt transfer, the benefit you’ll get are free balance transfer! but they not offering intro APR! but if you choose commercial banks, they will charge you a fee, though! their APR are 0% for limited of time!

 

Which one better to save more money ? is it Intro APR 0% from commercial banks, or no fee balance transfer from credit union ? well, if you can pay off your debt fast! I think bank or credit card company can save more money! but for long term , I think credit union are best option since their APR only about a half from commercial company! but I will not saying credit union are best option to solve this issue! because in reality sometime debt problems can be complicated than I can imagine! so I will try to be neutral rather than choosing credit union vs banks!

 

Anyway, guys! paying off credit card with new cards, basically are not the only option! because the idea save money from debt is to choose lower APR from previous card! so any methods as long it’s not to risky, and have lower APR from previous, card! actually it’s more than enough! for example, personal loan! if you compare interest rate credit card with personal loan rates, actually the different are almost a half! average credit card APR are about 14%  meanwhile APR for personal loan are about 6% for tenor 36 month!  so if you choose personal loan to pay off all your credit card debt, technically you can save 50%! interest rate!

Which company that can give 6% APR for personal loan ? well, for sure not all! but you can start with credit union near you, in your local area! but of course, if you have family that work at DOD, you can try with NFCU, or maybe if you have family that work for IBM, you can try 24 coastal, this two credit union actually are every where nationwide, and not just local!

 

Is there any other way to pay credit card debt without fee and no 0% interest rate ? well, actually there is! 🙂 ask your family, and borrow money from them! and pay off all your credit cards debt! for sure, no interest rates, no transfer balance or what ever ;)! just remember credit cards interest rate are compounded every month! so if you can’t pay off, it will increase each month!, but if you pay off before grace period ended! they will not charge you interest rate! but if you just pay minimum from total debt! for sure, 25% interest rates will Applies every year!  one more things! choose 1-2 card that have lowest APR! keep them and use it only for emergency! because credit card are bank Favorite for credit assessment ! especially credit without warranty! but if you have valuable asset, I think you don’t need credit card! because if you have business with good cash flow and asset actually you can get credit from bank! though, if you failed to pay, then your asset will gone! 🙂 to be honest, i prefer loosing credit score, rather than my house 😉  that’s why I always keep 1 cards, in my pockets! 😀

anyway guys, thanks for reading my tips! hopefully my tips can help you a little to save more money! 😀

 

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