Question: We need some credit card debt relief or even a settlement of some kind. We have looked at counseling to get out of credit card debt but our credit will be trashed when we are done. What steps or tips can we take to pay off and even eliminate the debt we carry on our credit cards. Heidi, Charleston, SC

Answer: Credit card debt follows many people with a wallet full of credit cards who also carry cards with high interest rates. Even with high rates the problem of credit card debt elimination can be tackled and the earlier the better. If the relief from debt is not attacked aggressively a small fortune in interest will be paid.

The credit card can be a useful tool but also a dangerous credit instrument. Without focus and regular monitoring of credit use the end result can be higher debt, out of control spending and years and years of paying on a slowly declining balance. When it comes to wiping out credit card debt – pay off as much of the balance as possible.

Lowering the balance will also lower the interest added each month.

Another simple solution is to pick up the phone.

Yes, pick up the phone and call the credit card company and ask for a reduction in the interest charged – do some negotiation! Tell them you will close the account and move the balance to another company. Do not only pay the minimum amount. Stop charging and pay as much as you can on the balance each month.

If the minimum payment is to much pressure because of too many credit cards to pay on each month consolidating the debt may be the best option to stop the bleeding and manage the debt repayment.

Debt consolidation can help reduce multiple payments, concentrate all the money on one monthly bill and reduce the risk of any possible late payments. It may also reduce the amount of time you will be repaying on the debt.

You may want to consolidate the high interest, costly credit card debt and make it more manageable and affordable!

Unsecured Consolidation Loan

A unsecured loan to consolidate debt can be an effective way to handle small, high interest cards and store credit cards. Income, financial position, assets and credit score. Consolidating all these debts into a smaller fixed monthly payment. You’ll need decent credit to gain the real benefits of unsecured consolidation loans.

Secured Consolidation Loans

Consolidation loans allow borrowers to secure money to pay off debt by tapping into the equity in a home. You must be a homeowner or property owner in order to take advantage of these loans. The ability to borrow greater sums of money on secured loans is higher than unsecured loans making them a powerful financial tool. The equity in the property is often the limiting factor in the loan level.

0% Balance Transfer Credit Card

Consolidate credit card debt on another credit card may seem like an odd way to reduce debt. However, using a 0% interest balance transfer will give you a period of time to pay down the total card balance with NO INTEREST. Usually you can transfer the balances from as many credit cards as you want to the new card up to the credit limit on the new card. There is usually a transfer fee of 2-3% of the total amount being transferred to the new card. Make sure you factor this in your calculations.

Life of Balance Transfer Card

If paying off the balance on a 0% balance transfer credit card does not look like it is a possibility a life of balance transfer card maybe an option to consider. These cards let you transfer the balance from any existing credit cards up to the specified limit. Another plus, you’ll be able to enjoy a lower monthly interest rate on the transferred balances than on the 0% balance transfer cards. But, you must be able to pay the minimum amount, take as long as you want and usually there are no transfer fees. To pay off credit card debt you do have some options. To get results you must take action to see results.

0% APR Credit Cards is only one of the offers and ideas credit card companies come up with make their credit card seem more appealing than others, along with rewards programs, low APR, and 0% APR card offers.

By offering programs that make their credit card seem better than the others, they are able to bring in more customers, and therefore increase the revenue of their company. A 0% APR card is one of the most popular ideas that credit card companies have, since it gives consumers the ability to make purchases without having to pay any interest.

How Does A 0% APR Credit Card Offer Work?

When a credit card company offers 0% APR, they are “presenting” qualified card holders the opportunity to use their credit card without having to pay any interest. The 0% APR usually lasts for a specific time period, ranging from three months all the way up to a year. During this time any purchases or cash advances made on the credit card will be interest free during the introductory period, so no interest fees will ever be charged.

This gives consumers the chance to make purchases they would not originally be able to afford, but they won’t have to pay any penalties for making the purchase on a credit card.

What To Consider When Applying For A 0% APR Credit Card Offer

Because 0% APR credit cards are usually only for a specific time period, it is important to look at what happens to the account once the introductory period is over. The card may be subject to a very high interest rate, and penalties and fees may result if there is a balance remaining on the card.

It is important to take all of these fees and charges into consideration before applying for any card including a 0% APR program, since it may end up costing more in the long run.

Another factor to consider is whether or not the interest charged after the introductory period occurs only starting when the period is over, or whether interest starting from the date the account was opened will be charged. This can end up costing a cardholder hundreds of dollars if a balance is left on the card, since the interest from the past months will be included as well. By assessing all of the possible charges and fees associated with this type of offer, one can decide whether or not 0% APR credit card offers really are beneficial.

How To Benefit From 0% APR Credit Card Offers

Even though there are some high fees and interest rates associated with 0% APR offers, they can still be very beneficial when used correctly. As long as the balance on the card is paid off before the introductory period ends, one can make all of their purchases without having to pay any interest. It may even be beneficial to use the card after the introductory period has ended, as long as it has a low APR.

The purpose of 0% APR card is to make a credit card seem more appealing than another, in order to bring in customers and make them cardholders. This type of offer can be very beneficial as long as it is used correctly, but there are a few factors that cardholders should take into consideration first. As long as the credit card really is better than others on the market, taking advantage of a 0% APR offer can be very beneficial to you and your credit card statement.

Offers for Credit Card Balance Transfer with headlines including words like 0% APR, Zero, Low and Fixed Interest Rate and Free are not as popular as before the financial institutions started to pull back on them. How often did you get them in the mail, 2 or 3 times per week? From your bank or with names of American Express, Visa and Mastercard all were looking to “help you” manage money better.

Transferring your balance can help in the consolidation of credit card debt carried on multiple cards, help lower the APR interest rate you currently pay on the balance and in the end save money along with getting your financial house in order.

Many consumers with a significant amount of credit card debt find a balance transfer to consolidate of all their cards onto one credit card very beneficial.

Before accepting any credit card offer make sure you read the Terms and Conditions. Make sure you follow all the rules and regulations that come with a balance transfer so you will get only the best savings you deserve.

The choice in credit cards offers today is enormous with a range of features, APR, rewards, balance transfer and other options. The selection process is not an easy one. Each card offers the holder unique features for that card.

If you strip away all the fluff and fine print most credit cards have on minor differences in their offerings. One provides cash back on purchases, another you acquire points for travel and others let you consolidate your other credit cards.

One component of every credit card application will be the APR. The APR is short for the “Annual Percentage Rate” or the percent charged by the company to allow you to carry their card, make purchases and carry a balance.

APR For Every Type of Purchase

Understanding the APR is an important part of the overall credit card transaction especially if you carry a balance at the end of the month. The APR varies from card to card, type of card, the type of transaction along with buying and how you pay your bills.

Many consumers think of only one APR rate, however, a credit card can have numerous APR rates. For example, cash advances come with the highest APR; purchases on the other hand are usually a much lower APR. For instance, taking a $25,000 cash advance with your credit card could show up with a fat 23% APR on the advance. But, buying that flat panel LCD TV and home theater system although pricey slides in under the radar at 19%. Four percent may not sound like much but over time the charges add up.

Only reach for your credit card when the need is urgent ­ this means absolute needs not wants ­ or use your card for purchases you have the money for and can pay back at the end of the month without additional charges. Read these credit essentials.

Depending on your monthly balance can also make a difference in the APR charged. These changing APR’s move around as they are tiered and tied to your balance. Carrying a balance of $2,000 and below may trigger your APR to be 13.9% but once the balance moves above $2,001 the APR changes to 18.1%. This is just another reason to keep your balance low or better yet pay it off every month.

There is also an APR for the late payer. If you always seem to be late on your credit card payment each month your APR will often go up. This raises the balance and makes less of your payment go towards paying off your debt. Make your payments on time and pay more than the minimum.

The Intro APR

The introductory APR is the percentage rate you see plastered on the outside of all those credit card offers in your mailbox each week. They make for great marketing to entice consumers to make the switch to another card with a lower rate.

These cards come with a low interest rate and allows consumers to transfer and consolidate their outstanding balances onto one credit card. The rates look attractive, they can also be helpful if you’re trying to pay off all those past charges.

Before transferring any credit card balances make sure you understand the introductory APR period. Once the period has expired a new higher APR will be charged on the remaining balance. This APR rate is often very high, read the fine print before applying. When applying look for a card that offers 12 months at a 0% APR, then focus on paying the balance OFF in the 12 month period.

In closing do not look at the APR on an offer assuming everything is one rate or that it will last forever. Many financial conditions come into play. The choice of a credit card should be done carefully with a complete understanding of the APR at all levels.

Credit cards that allow consumers to transfer the open balances on their other cards are heavy marketed products in the financial world. Before you apply for a card and transfer balances from one card to another make sure you understand what is involved and what you are paying for in fees.

If you do not pay attention and understand the cost associated with balance transfers in the end the “saving” could be a costly move. Answer these questions before applying for your card.

Introductory Interest Rate – Is there one and if so what is the interest rate?

Many cards you receive in the mail may offer a zero or low introductory rate on all balance transfers. This low APR rates can eliminate or greatly reduce the finance charges on the open balance each month. With a finance charge waived for a period of time it can make paying off the card balance much easier.

How longer will the Introductory Period last?

Most of the time these introductory periods and the low rates last for six months to one year. Some run for up to 15 months. The longer the intro period the better chance you have of paying off the balance before being hammered with a full finance charge.

What will the new APR be after the introductory period expires?

Go for the lowest APR possible. Knowing in the back of your mind the APR will increase after some many months can be a big motivation for paying off the balance ASAP. Balance transfer APR is usually different than the APR on purchases. Keep and eye on any purchases.

Does APR apply only to transferred balances only or are purchases at the same APR?

To attain more customers many credit card companies separate have different interest rates for different transaction types. For example, balance transfers carry a different rate from a purchased item on the card. Cash advances in urn have another APR. Read the fine print! You need to understand the interest rate for each type of transaction the card is used for.

Do You Meet the Qualifications for the Introductory Rate?

Never assume that the offer you receive immediately qualifies you for a zero percent interest rate. The final rate depends how the company views your credit history. The final rate could be much different than the advertised rate if your credit is not is the best shape.

What are the Fees Associated with Balance Transfers

The fine print will let you know if there are any fees associated when transferring the balances. The low rate could be “recovered” with additional fees. These fees could be a flat fee to transfer the balances or the fee could be based on a percentage of the amount transferred. There could be no fee on the initial transfer but fees for transfers that occur later on.

What is the default or standard rate and when does it come into effect?

The default interest rate is the highest rate the credit card company will charge for usually penalties. This includes late payments and over-limit charges. No these rates before you make your application.

Balance transfer cards can be a great way for consumers to reduce their credit card balances. Imagine only having to make one payment each month at a low interest rate. It sure makes paying off the pleasures in life easier.

With so many choices in the world of credit cards one item stays a constant – the changing APR or “Annual Percentage Rate.”

Many cards holders are unaware that the APR on a credit card is not a constant. The rate changes depending on a variety of financial calculations.

For instance, cash advances usually carry the highest rate while purchases using your card is at another rate. When you signed up for you 0% APR card and transferred all of your balances my likely the card came with a grace period on the balance. Once that time ends a new APR comes into play. Confused? Learn more here in Low APR Credit Cards May Not Be Created Equal – Know Your Cards APR and How it Changes.