0% APR Credit Cards
We all know that credit cards are expensive, especially if you are deep in debt with them. So how can some companies offer interest free credit cards? The answer is simple, they are offering free credit as a loss leader, that is to say they get clients who will reimburse them later on with all the interest they will pay. The majority of No interest credit cards have contracts stating that the initial interest free period will only last for the first year, after this period you will be charged at a normal rate.
0% APR Balance Transfer
As a way of getting new customers, credit card companies will try to capture the customers from other companies by making it really easy for them to make the change. As well as offering 0% interest as stated above they also offer to transfer any existing debt or balance free of charge.
The combination of the two points above is often taken advantage of by the savvy consumer. If you are making regular payments and due to the high debt you are in effect only paying off the interest and not reducing the capital then you might be able to try for a no charge balance transfer combined with no interest for the first 12 months. This would mean that you get a whole year where all of the payments you make will go towards paying off your debt instead of simply paying off the interest each month. You might even eliminate your debt entirely by doing this.
You could also make the most of the offers above as follows. If you want to buy an expensive item. Instead of getting financing through the vendor or your bank you might get a 0 interest credit card and pay for the item that way. Split the total payment into 12 parts and you have what could be stated as a years free financing.
