If you are not using one of these types of credit cards and carrying a balance on your credit cards you are throwing your money away!



Does one of these situations fit you?

- You run a high debt to equity ratio.

- You have multiple credit card debts.

- You have several credit cards at their maximum limit.

- Most of your payments go to interest.

If any and all of this information sounds like you; then read this very carefully.

Most all credit card companies offer either 0% interest credit cards or fixed rate credit cards throughout the year.

So, which credit card is the best one for your situation?

Let us look at the pros and cons of each. With 0% credit card offers you will pay no interest for a set time frame in which all of your payments will go to principle. After that set time frame the credit card companies will raise your rate to their standard rate. The standard rate makes me sick it is usually twice the premium rate of a fixed rate credit card running on a variable rate which is prime rate plus a premium. This new rate usually and immediately puts your interest rate over 10% to 12% without blinking an eye. So what is happening is the credit card companies are trying to make their 0% back by leaps and bounds.

Fixed rate credit cards (which are for the life of the balance transferred) offers range from very low rates of 2.9% to 8.99% of balance for life. The benefit of this card is simple. With out the fixed rate most are 12% to 23% variable for life. Variable simply means the rates jump up and down as the federal government raises and lowers the prime rate. With fixed rate credit cards you can reasonably expect to cut your interest each month by at least half of what you are currently paying each month. So this translates into reducing your principle at a greater rate than you were previously with the same or smaller payment.

Most credit card companies will offer both types, so this is what you must decide; which of these credit card types better suites your needs.

Be honest with yourself and answer these next set of questions:

Your answers determine whether 0% credit card offers or fixed rate credit card offers are the best choice.

If you will pay your 0% off within the time frame specified that is definitely the route to take.

If you know that you will not pay it off within a year, but will make sure to transfer it to another 0% card before the time frame specified it will work for you as well.

If you can't get a credit card with a high enough balance, try using multiple 0% credit card offers or then try to use fixed rate credit card offers to cover the difference.

If looking at yourself honestly and you know that you would not transfer a 0% rate balance before your timeframe ends then go with the fixed rate credit cards as the premium rate applied to your account after your introductory time frame will negate the benefit of the 0% over time.

Try to make the current payments that you are making now every month. Do not decrease the amount as your minimum payments go down and your will be paying off your debt in no time.