0% Credit Cards: Are They Worth It?

Credit card jumping has become a common tradition. The terms confer to the habit of moving debt balances from card to card to take advantage of affirmative rates. But just how valuable is credit card jumping for consumers?

UK consumers have staggering levels of debt. Consumer borrowing has grown by more than 50% in five years. It's no marvel that people are looking for new ways to lose the debt burden. Credit card jumping offers one possible solution.

Money Saving Device

People who are loading a large amount of debt can save hundreds of pounds in interest easily by taking advantage of the latest credit card balance moving deals. Most of these offer a 0% interest rate for a fixed period, such as three, six, nine or even 12 months.

As well as moving balances from other credit cards to a 0% credit card, purchasers are sometimes able to transfer balances from store cards and even outstanding loan amounts.  It is right checking to see if these transactions also interest from the 0% balance transfer rate.

Transferring a balance to a 0% credit card means that any payments made are paying off the principal instead the interest. These lessen the amount owed, which is great news for those using this as a debt management method. Plenty of card issuers do charge a balance transfer fee to curb the practice of credit card jumping, so it is valued looking around for the best deal.

Getting The Best From Credit Card Jumping

To get the best from 0% credit cards, many brilliant consumers move from card to card when the affirmative rate period expires. This entail some organization, but credit card jumping can mean that debt balances proceed to go down as consumers move money (or rather, debt) from card to card. Those who don't transfer their debt at the right time often find they are paying a much higher interest rate – and the debt is not being clarify. This method works best when consumers pay on time. Late payment can result in fees that increase consumers' level of debt.

Consumers who are intake many credit cards to control their debt should regard in creating standing orders to handle payments automatically. It is also valuable using a spreadsheet or calendar program to keep track of when it is time to move to the next credit card.

Other Incentives

Credit card jumping can be effective methods of reducing debt, whether consumers do not add any new debt. There are also other motivation for using 0% cards, such as charitable contributions, rewards points, air miles, travel insurance and much more. It is worth shopping around to get a reward as well as the interest-saving rate.