Credit Card Debt is Expensive

Do you know how much your unpaid credit cards balances are really costing you? You will be probably be surprised if you thought about it in terms of a monthly cost or annual cost. Those interest charges on your unpaid balances can put a real dent into your wallet.

So How Much Does Your Credit Card Debt Cost? Think about your credit card debt this way. You are paying about $100 $150 for every $1000 of debt at a 15% interest rate over the course of a year. That is quite a bit of money when you are trying to get yourself out of debt. Especially when you think about the fact that most credit cards have rates over 15% and that many people in debt are probably carrying over $1,000 month to month.

There are solutions to alleviate your debt load on your credit cards. People seek debt councilors or negotiate payment plans with the companies that they owe but in the end they are still paying that interest on top of the initial debt amount.

Another solution is the 0% interest rate credit card. You can find many credit cards that will offer a 0% introductory rate for moving your existing credit balance to their credit card. You are basically paying off your high interest card with a 0% interest card. You will save money over the term of the special interest rate and help pay down your debt.

If you are going to try this there are Balance Transfer Mistakes to Avoid. I have a friend that basically financed his inground pool this way. You have to make your monthly minimum payments or it will be all for not. You have to be mindful of what the new rate is going to be once the 0% rate period is over. My friend, he just simply moved the new balance over to a new 0% credit card before the old one expired and did this a few time until he was out of debt.

It takes a bit of planning but it is way to work off your credit card debt.

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