Paying a high interest rate on your credit card balance can eat away at your finances, especially if you have a large credit card balance. However, it may be hard for you to wipe off your credit card debt if a large part of your finances is going towards paying off your interest rather than paying off the principal balance on the card. In order to get yourself out of this situation, you can opt to transfer your credit card balance to a card that charges a 0% interest on your card balance. This will help to improve your financial outlook in 2016 in several ways.
Getting a 0% balance transfer is advantageous because it shows that you have a good credit score. Often, people with a bad credit score are not approved when they apply for the cards. If you have a bad credit core but you would still like to take advantage of this offer, the best way to get around this is by adding one of your friends or relatives as a co-signer on your card.
Carrying out a balance transfer will make it much easier for you to keep track of your credit card debt. This is because you can transfer balances from multiple cards to one card. This means that you can just focus on clearing the balance on that card, rather than trying to keep up with paying balances on multiple cards. This will be less stressful for you.
Having the card will cap your spending. This is because most card issuers will discourage you from using your new card to make new purchases. If you go ahead and use the card to make purchases then you will be charged a regular interest rate for the purchases that you make using the card. Not making any new purchases will help you to spend less and get out of debt faster.
You can take advantage of the 0% balance transfer offer to clear any high interest credit card balances that you have. It would be especially great if you can get a balance transfer with a 0% transfer fee or a transfer fee that is as low as possible. Make the balance transfer if you are planning to clear your credit card balance before the 0% interest free period is over.
You can take advantage of balance transfer to get yourself out of a financial jam. If you find yourself in a bad financial situation, you can use your regular credit card to pay for the expenses and then transfer the balance to a 0% credit card. This will give you ample time to clear the balance and get yourself out of a bad financial position. Just remember that you have to be responsible and organized, so as to pay off this balance before the interest free period is up.