Author: Cayce Date posted: Nov 24, 2008 Article views: 74 Wordcount: 789 Ezine Ready
They are out to get you!
Have I got your attention yet? It is easy to say that isn’t true, they are everywhere. Well; I beg to differ. If you look around yes every credit card company around throws the 0% in nice big print right in front of your face; but that isn’t the case. Try to look for a 0% interest credit card offer in which you do not pay something in the front end? You see the credit industry relies on fees.
State of the Economy
One of the main reasons the economy is in the state that it is; is the credit industry is only governed in the since of the percentage rate in which they can charge, while they have no limitations when it comes to fees, fees, and more fees. The credit industry is unrestricted to slam you with as many fees as possible. There have been credit card companies which allegedly told their employees to hold payments for a day or two so they can charge additional fees as if the interest they receive isn’t enough. You see the economy is in the state that it is because the laws have been change to keep individuals from filing bankruptcy against 100% of their credit card debt. Individuals wanting to file bankruptcy are now required to pay back a percentage of their credit card debt. See the thing is more and more laws or the lack of them which ever is the most beneficial to the credit industry makes it harder and harder to get out of debt. Here is the most important thing to understand; the credit industry relies on your need to use the credit cards to exist so that you turn into a rolling debt.
Credit Industry Fights Back
In the past the credit card companies where willing to offer a true 0% interest credit card offer and actually give you just that. There where no catches, tricks, hidden fees of any kind. The credit card companies thought that if they could get you to transfer your debt to their credit card it was only a matter of time before they would start earning interest monthly. They incorrectly believed that you would not transfer your balance to another credit card before paying some sort of fee to them. You see it is very simple several individuals figured out if they transferred a balance from one 0% credit card offer to another prior to the end of their introductory term; they would only pay principle and never ever have to pay interest. The credit card companies are businesses and will operate as such. In essence they just lost money be lending it too you; and they will not repeat that mistake. The credit card companies would have been better off investing in stocks or bonds somewhere else to draw interest. This led them to adding the infamous fees.
Knowing your financial tool
You see the way you should view credit card companies 0% interest credit card offers and fixed rate credit card offers are financial tools, not a crutch to live by. Too many individuals use, live, and die by credit card companies and their offers and that is the problem. The credit card companies know they have you hooked and they know you will be carrying your balances from month to month. They expect and rely on spending habits in which individuals spend beyond their means. A 0% interest credit card offer for the most part will have a 3% fee with a $25 minimum transfer fee with a maximum of $100. Now that you know what you will pay the fee you can figure out your finances correctly. So for the most part; you will pay a fee between $25 and $100 which ever is higher. So how does this work for you? It is plain and simple 0% interest credit card offers are dead, but you can transfer debt with a fee of no greater than $100.
How to use your 0% interest credit card offers correctly!
Go through your credit cards with a monthly roll over balance and a percentage rate greater than 3%. You will simply transfer your debt to those cards and save the amount of the difference between 3% transfer fee and what you are currently be charged. For instance is you are currently being charged 12.99% annually then it would be 12.99% - 3% equals a minimum of 9.99% savings for that year in interest.
So as you see 0% interest credit cards really do not exists as you will pay a minimum transfer fee. These credit cards are excellent financial tools if used properly.
