Credit Cards - Playing the 0% Game
Ever since the first 0% interest rate offers on credit cards hit the mailboxes, smart consumers have been using those 0% introductory rates and 0% balance transfer offers to pay down their high interest credit card debt and get a fresh start on their financial life.
While this 0% game can be a great way to save money on interest charges, it is not without its perils and pitfalls. Those who are not careful can quickly find themselves paying interest rates that are as high, or even higher, as the rates they were fleeing.
That is because after the 0% introductory rate on balance transfers and new charges has expired, the interest rate reverts to normal rates, and those rates can be quite high. It is essential to read the fine print carefully, and to know when those teaser rates expire.
One handy trick is to write the expiration dates of the special offers on the calendar, and to move on to another 0% intro rate before that expiration date occurs. Many savvy shoppers have used this strategy to get a string of 0% interest rates for as long as a year or even longer.
Those who do not want to go through the hassle of constantly switching cards may be able to negotiate an extension of the low introductory interest rate with their credit card companies. Some consumers have reported success with this strategy. Credit card companies are loathe to lose customers, and they will often make considerable concessions, such as extending the 0% interest rate period, to avoid losing a cardholder
Of course the ultimate goal of this 0% game should be to pay off those credit cards, and to avoid running up additional credit card bills in the future. Getting a low, or 0%, interest rate makes the process of paying off those credit card balances at lot easier and a lot less painful.
Playing the 0% credit card game may not be easy, but the rewards can certainly be great. With many credit card interest rates hovering in the 15-18% range, getting a 0% interest rate, even for a short period of time, can provide consumers with a real shot in the arm and a great way to reduce and eventually eliminate their debt.
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