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Wednesday, July 31, 2013

Paying off Credit Cards

I love credit cards for cash back, as my post "Credit Card Cash Back" explains.
The key of course is pay on time, in full, and incur no interest or fees.
I have everything on autopay to ensure it is never an issue.

However, if you have some debt you need to pay off, first thing is to stop over-spending.
Second step is to move the debt to lowest interest possible.
Third is to pay off the credit cards in full in a set timeline, payment per month.  In this case, set a goal of 18 monthly payments.

There are credit cards that let you transfer balances to it, with ZERO interest for 18 months.
Pretty incredible actually.
There is a 3% transfer fee, but typically that fee is ignoreble compared to annual rates of 12-30% annual interest.

Here are some cards with 18 month no interest on transfers
CitBank Simplicity - No annual fee, no  late fees, no penalty interest rates.
CitiBank Diamond Preferred - will charge late fees, but like Simplicity
Discover - I like 5% cash back on new purchases (like gas right now), and 1% on all else.

15 month zero interest
Chase Slate

LOW Fixed interest of 8%! and get back 1% on balance transfers!
Barclay card

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