Paying back the outstanding amount you owe on your credit card can be expensive because of the accrued interests. You can stop paying the interest and speed up the time it takes for you to clear your credit card debts by having them transferred to a 0% balance transfer credit card. The 0% APR is usually only valid during the introductory period which can range from 6 – 24 months. You should find a card with an introductory period that you feel gives you sufficient time for you to pay off your credit card debt.

Although you will save money on the zero interest, the balance transfer card may charge other fees such as balance transfer fee that range from 3% – 5%. It is important to take into account all the fees and calculate the cost properly so that you know whether it is worthwhile to have your balance transferred. Once you have applied for the balance transfer card, you should come up with a repayment plan for example how much you are able to set aside at most every month.

Every balance transfer card has a different credit limit and you can only transfer up to the credit limit in the card. For example, if the card has a credit limit of $10,000, you can transfer up to $10,000 and this is taking into account all the balance transfer fees. The card issuer will contact all the credit card companies whom you owe money to and this process can take up to 1 – 2 weeks. It will forward the amount you indicate to each of the credit card company every month.

Your goal is to eliminate your entire deb on the 0% APR balance transfer card by the end of the introductory period. It is advised that you don’t charge your balance transfer card for any purchases because doing so will increase your credit card debt burden. There is no need to close down your old credit card accounts but you should also not charge those credit cards for new purchases. Some balance transfer credit cards charge late payment fee so make sure you always send in your repayment on time to avoid the fee.

Apart from reducing your monthly payment, balance transfer card makes it easier for you to repay your debt by combining all your credit card bill payment in one place. You just have to remember a single due date for the multiple cards where you owe money on. You can transfer the balance of a credit card you applied at a store, gas station or credit card company onto a 0% balance transfer card. Some cards will limit you to transfer your balance within a set period in order to be qualified to enjoy the 0% APR. Therefore, you should transfer the balance as soon as possible to take advantage of the 0% APR.