Cutting credit card with no balance

Zero percent interest on my credit card…too good to be true?

If you use a credit card, you’re probably familiar with the term zero percent balance transfer but what does it really mean?

And most importantly, is it worth doing?

Here is how it works, using Beyond Bank as the example.

Say you have $10,000 sitting on your credit card that you just can’t pay off by the monthly due date.

That money will be slugged a hefty interest rate of anywhere up to 20% depending on what bank and card you use.

That in turn, means you could be paying several hundred dollars in interest alone and that really is a waste of money.

This is when it’s a good time to consider taking up a zero percent interest transfer offer.

What this means is that the $10,000 you have sitting on one card will be transferred to your new card but it won’t attract any interest so you are only paying that amount off.

With most cards, there is a time limit and at Beyond Bank, we currently offer up to 12 months with zero percent.

Things to ask your bank include: double checking the normal interest rate and asking about loyalty programs your previous card may be linked to, things like frequent flyer schemes and discount programs.

Once you’ve ticked those boxes, you’re ready to go.

Remember, it is always worth getting expert advice on your debt and wealth management in general.

Moving credit cards can be a good reason to start thinking about the bigger picture when it comes to your personal finances.



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