A Simple 2 Step Process To Pay Off Your Credit Card Faster

Millions of American households are currently struggling under the weight of large monthly interest charges as U.S. According to Federal Reserve and U.S. 15,000. If you, like so many other Americans, are in a situation of having too much credit card debt, there are solutions that can help you shed that debt fast. One solution is actually just a simple two-step method which can speed up the repayment process, allowing you to pay off your debt faster while also paying less interest.

To pay off your balances faster, the first thing you need to do is stop the interest charges. It's extremely difficult to make serious headway on a sizeable balance when you're getting hit every month with huge new interest amounts put on top of your existing debt. Unfortunately, not many people know that almost anyone with decent credit can put an immediate halt to their interest charges by simply transferring their balance to a new credit card offering a 0% introductory APR term.

The key trick is to find a credit card that focuses on both a long introductory period and also features a low balance transfer fee. Cards such as the Chase Slate, the BankAmericard, or CapitalOne Quicksilver card, are all options that fit these criteria well. With these two features, you can reduce your debt quickly with minimal costs. Remember, it's important to put as few new charges as possible on your cards while you're going through debt reduction.

Once you've transferred your balance to the best 0% intro APR offer you can find, you're now set up to quickly power through your balance. The reason your debts will now be paid faster is that with no interest, 100% of your payments will go towards reducing your balance, rather than being split and lining your creditor's pockets. If you focus on your payments and paying your entire debt off within the introductory period, you can avoid interest entirely on your credit card debt.

Even, if you don't change your payment behavior, you can still significantly reduce both the time it will take to repay your credit card debt and the amount of interest paid. Take a look at the chart below to see the impact transferring a balance can make. 2,150 more over the same period.

Clearly, it makes little sense to continue paying interest on your credit card debt. Every month you keep things as they are is another month your credit card company is making more money from your hard work. If you want to pay off your credit card debts faster, consider some of these balance transfer cards recommended by LendingTree's credit card research team.

Interest begins to accrue, and a portion of your payment will go toward paying off the interest, rather than paying down your debt. If you make only the minimum payment, your payment might even be all interest, which won't reduce your debt at all. If you have good credit, you can often get a break from paying interest by applying for a balance transfer credit card. These credit cards give you a 0% annual percentage rate period for a specified length of time -- often a year or longer.

The catch is that most of these cards (but not all of them) charge a balance transfer fee of 3% to 5% of the amount you're transferring. They might still be a good deal, but you need to calculate how much you'd save in interest and make sure it's worth it.

Managing debt is a difficult task for many people. When credit cards are involved, the process becomes even more complicated. In many cases, the applicable interest rates on some cards can become an anchor to one’s ability to handle their monthly payments without creating stress. One of the best ways to get credit card debt under control is through the use of 0 interest credit cards.

What Are Zero Interest Credit Cards, Zero interest credit cards have an 0.00% APR for a specified amount of time. Most 0 APR credit cards provide 12-18 months interest free to new card members. This rate is usually applicable to all purchases and transfers made during the introductory time. While many cards charge a transfer fee, the interest savings will usually more than compensate for any of the fees incurred. Credit card companies use this promotion as a means to pull customers from other issuers in a highly competitive industry.

It also provides customers with a great opportunity to make big ticket item purchases (appliances, vacations, furniture, etc.) without incurring interest for a specific length of time. What Characteristics Are Found in the Best Zero Percent Credit Cards, The most preferred zero percent credit cards are those that provide the longest 0.00% APR period.