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We all, over the course of our
lives, sometimes rely on credit to get by. Whether it
is for a mortgage on our home, a loan for a car, or a
payday loan to get by until next Friday, there’s
little we can do to escape the effect of a debtors
society. But the way you handle your debt is something
you can have a say in, and indeed the way you do so
could mean you save – or spend – thousands of
dollars a year.
Let’s imagine you have a few credit cards on the go.
One of them, the card you had since you were in
college, has a few grand racked up on it, and because
you missed a few payments way back when, the interest
rate is at 19%. Ouch.
But most of us never look at the interest rate we’re
paying, because, quite frankly, we don’t give it a
second thought. MasterCard says we owe them $184 this
month, so we pay $184.
But it doesn’t have to be that way. Many credit card
companies will give you a card, albeit with high
interest after a period of time, that for the first 6
months to a year comes with 0% interest on all credit
card transfers. What this means is, if you use your
new card to pay a big chunk of your old card, you pay
no interest on the new card for a set period of time.
Now, of course once that time is up, they’ll put you
right back on the expensive interest rate, but for a
short time, the money you pay on your credit card is
ALL-principal.
Credit card companies don’t like you doing this too
much – in fact, they’ll put it on your credit card
report if you do it more than a couple of times –
but if you’re looking to get out of a short term
financial logjam, look for those introductory offers
and use a new card to pay off your old card.
Oh, and when you do – shut the old card down!
By www.homehammer.com/debt-consolidation.php
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