How to Use Zero Percent Interest Credit Cards to Get Out of Debt

Debt is a serious problem that takes time and ingenuity to remedy, something the so called "experts" dangle but never deliver. One method that is highly effective, but are rarely discussed, involves using a zero interest credit card. These cards are extremely effective for debt reduction because you no longer lose the value of your dollar for interest fees. This method will work, however, above average financial discipline will required by avoiding frivolous expenses and those individuals who often carry a credit card balance from month to month.

Difficulty:

Moderately Challenging

Instructions

1. Begin by acquiring a zero interest credit card. Companies like Discover Card and American Express are good places to begin your search.

2. Create a working budget for yourself (and family if applicable). Do not spend more money than you make as this is a sure fire way to sink further into debt.

3. Transfer any existing debt from other credit cards onto this new, zero interest credit card. Each credit card company will have a set protocol to make this happen. Simply contact them to set the wheels into motion.

4. Begin making payments upon your remaining balance, and make these payments as large as possible to lower the balance as quickly as possible.Do not overpay on this amount to the point where cash flow is restrictive, as this strategy serves primarily as debt reduction but also as a stress relieving tactic to regain control of your finances.

5. Avoid unnecessary purchases, such as luxury items or excessive shopping sprees, that will increase your current debt. Remember, the goal is to reduce your debt not add to it.

6. Keep tabs on the length of your Zero Interest credit allowance. For example, some cards will extend this offer for only 12 months, and at the end of 12 months regular interest rates will apply. If you can't bring your balance to zero after 12 months, simply sign up for another Zero Interest credit card offered by a competitor

Tips & Warnings

• A budget that fits your spending style is paramount to this debt reduction strategy. Make those payments you deem absolutely necessary (mortgage/rent, food, car & insurance payments), but eliminate those expenses deemed unnecessary (i.e. $4 lattes, eating out 5 nights per week, etc.)

• Keep a written record of your expenses and update this weekly. Tracking the progress of your budget and the reduction of your debt will serve as a motivation to continue along your path.

• If you are incapable of following a budget, do not attempt these tips. This technique is reserved for those who can stick to a budget for a long period of time (i.e. 12 months).