rmally, when you’re looking to consolidate credit card debt you have the following options: get a debt consolidation loan -or- apply for a home equity loan. But if your credit card debt is still manageable, you may want to consider consolidating your balances with 0% APR credit cards instead. Using a 0% APR credit card will help you pay off your balances and spend less on interest charges!

To use a 0% APR credit card to pay off your debts, follow these steps:

1. Transfer your existing credit card balances to a new 0% APR credit card.

2. Continue to pay down your balance as usual. But instead of paying only the minimum each month, also pay the amount of interest you would have paid with your other card. This will reduce your debt even quicker!

3. Watch your introductory period. When it’s about to expire, shop around for a new 0% APR credit card and transfer your balances again.

4. Continue this cycle until you become debt free.

0% APR Credit Cards vs. Debt Consolidation:

So you’re considering a debt consolidation loan instead of a 0% APR credit card. Let’s see how much you could save and how much quicker you could pay off your debt using the method shown above. Here’s an example:

Assume you have an existing credit card debt of $15,000. You would pay $250 per month until the debt is paid off. Your debt consolidation loan was approved at 7% (much lower than your original 12% credit card!)

1st Year Principal $2,014

2nd Year Principal $2,160

3rd Year Principal $2,316

4th Year Principal $2,483

5th Year Principal $2,662

6th Year Principal $2,855

Total Interest Paid $3,516

Total Amount Paid: $18,516

TOTAL Number of Payments: 70

Now let’s compare paying off this same debt using 0% APR cards

1st Year Principal $3,600

2nd Year Principal $3,600

3rd Year Principal $3,600

4th Year Principal $3,600

5th Year Principal $ 600

Total Interest Paid $ 0

Total Amount Paid: $15,000

TOTAL Number of Payments: 50

You would save $3516 over a six year period. Plus, you will be done with your payments 15 months sooner. Imagine being debt free over a year before you planned!

Words of Advice:

Although using 0% credit cards to pay down your debt is a great option, try not to switch credit cards too frequently. Doing so can negatively impact your credit report. Shop around for 0% APR credit cards that have the longest introductory periods and the lowest APRs (after the intro period) to buy you a little breathing room. Also, don’t fall into the trap of spending again on your old credit cards. Either close them or deactivate them so that you don’t get yourself into further debt. And don not overspend with your new card either (even if it is 0%)! Finally, make sure you apply the money you saved on interest to your new payments to help eliminate your debt faster.


Biofuel News

There are many different kinds of credit cards on the market today and the most sought after is the low APR credit card and with good reason. Low APR credit cards will give you the lowest interest rates throughout the year, saving you money.

In the process of finding the best low APR credit card, be sure to look for one that is suitable for you. Take a look at some of the credit cards that are on offer, so you know which ones are available to you. The low APR credit cards offer a wide range of extras including reward schemes where you get a percentage of cash back on purchases at grocery stores, bookstores and in some cases even on gasoline. You will find the cash back offers normally range between one percent and five percent.

The APR is the Annual Percentage Rate. This rate takes into account set up fees, interest rate and other factors included in the lenders agreement. It is the rate charged that you would be obliged to pay over a one year period on your low interest credit cards. It is good for the borrower as you can calculate just how much you are going to pay and if the rate offered is within your budget. The APR will vary between lenders, depending on how competitive the lender is. Lenders looking to attract new customers for their low APR credit cards may offer the best introductory rates. If you are taking out a secured loan against your property, then the APR is normally calculated in relation to the sum you are borrowing in comparison to your property’s value. This means you may not qualify to get the lower rates on offer. Also if you have had difficulty obtaining credit, or a poor credit rating in the past, then it is unlikely you will be offered the low interest credit cards.

Some low interest credit cards offer a permanent low rate. Other low APR credit cards give you an introductory offer where you get a lower rate for a fixed period of time, maybe six to nine months. As an example you may get a card with a six months 5% APR, then a 12% APR thereafter. This means for the first six months you will only be charged an annual interest rate of 5% on your balance, or purchases. However any purchases or balances that are outstanding after six months will be charged at a rate of 12%.

A low APR credit card is used by many people to make large purchases. They take advantage of the low rate offered, so they can have a few months to pay off the balance. Using your low interest credit cards this way can save you quite a lot of money. It is important however to fully read and understand the terms of the introductory rate offered. You don’t want to end up by paying interest or fees you don’t need to.

The best offer that a lender will give you is of course 0% APR rather than just the low interest credit cards. Many offer this for an introductory period only. Don’t just jump in and sign an agreement with a company because they offer 0% APR. Always take into consideration what their normal rate is going to be. It is this rate you are going to pay interest on, so you don’t want the permanent APR to be too high.

If you already have credit cards it may still be well worth looking at changing to another low APR credit card. Many lenders will let you transfer the balance from your current low APR credit cards to a new card. You may be able to save a lot of money by doing this, if the rates are lower than you are currently paying. There is nothing to stop you changing every time your low interest credit cards introductory rate is about to finish, and is well worth considering.

Hunting for low APR credit cards has become easier with the advent of the Internet where you can draw an easy comparison (from the various options available to you at the click of a mouse) as to which low APR credit card will be the best for your needs. The article below provides the complete informational lowdown on low APR credit cards.

Low APR credit cards charge you an interest rate even lower than the standard APR. The lower the interest rate or APR, the cheaper the card is to carry and the more money you’ll save on it. So if you carry a large monthly card balance, a low APR credit card could be very beneficial for you and in some cases where low rate credit cards have offers, they can also help cardholders like you save significant dollars over time. What is an APR anyway? Well, let’s discuss…

Rationale of Low APR Credit Cards

The Annual Percentage Rate (APR) is the cost of credit; it is the amount of interest rate that is chargeable to any outstanding balance on a credit card. If you don’t make the full payment within the grace period certified by the credit cards company, the company has the right to charge you a fee for that service, an interest rate fee known as the APR. But for a credit card to be considered cheap for a consumer, it should have a low APR.

With a low APR credit card, comes an agenda in fine print. Lesser mortals like you and I fail to recognize the same and read it to our advantage. Here’s what the hidden agenda might state:

1) Annual Fee: Many a low APR credit card might offer you a low interest rate or APR but require you to pay a significant annual fee. If the effective interest rate (after counting the annual fee) is indeed higher than the actual rate, then this credit card is obviously only cloaked as a low APR credit card.

2) Low Introductory Rate: Credit card companies know that low introductory rates are a great promotional incentive. So when suddenly, the initial period expires, and your monthly minimum payments mount dramatically, you know something definitely smells fishy. Check it prior to applying before you fall prey to this credit card company trick.

3) High Balance Transfer Fees: Another trick in the trade is that some amongst the low APR credit card fraternity offer low balance transfer rates that come with significant fees. These balance transfer fees are always mentioned in the fine print or the terms and conditions but are rarely spoken loudly about in the promotional language of the card.

Moral of the Story: Read and re-read the fine print and all of the terms and conditions associated with any low APR credit card before you apply.

Follow these simple steps when shopping for low rate credit cards:

1) Call the institutions in which you already have bank account or credit card account. Discuss with them the possibility of converting your existing account to one with a lower APR than you currently have.

2) If your existing credit card company cannot indulge this special request of yours, seek a company that will.

3) Get in touch with the companies where you are interested in applying for low rate credit cards.

4) After selecting the best card, fill out the application and return as per the instructions via mail or online. Make a call to the credit card issuing company if you have not heard from them in the subsequent 10 to 15 business days.

5) You reserve the right to obtain an explanation if the credit card company has turned down your application. The denial letter must explain how you can obtain your credit report to investigate the application denial.

More Tips On Low Rate Credit Cards

One of the strategies that some people utilize to get the most out of their low rate credit cards is to keep rolling over credit card balances to different cards with 0% introductory APR offers until successfully paying down the card balance. But beware of this particular strategy. Make no bones about it though; this strategy takes time and discipline and a high degree of diligence and meticulousness in keeping exact records.

Credit card issuers reserve the lowest interest for customers with the strongest credit histories, so, as always, try to maintain a clean credit history.


Your Large Debt Resource