A Credit Card That Can Help With Your Debt

There’s no denying that most debt is bad, and that credit card issuers don’t have an incentive to help you get out of it. After all, they make a lot of their money from the fees and interest rates they charge borrowers.

But once in a while, a card will offer an attractive sign up bonus that can actually help. This is the case with the Barclaycard Ring Mastercard.

It has 0% apr for 15 months, and 0% on balance transfers made within the first 45 days of account opening. But it shines with no balance transfer fees.

Most cards offering a 0% introductory rate charge around 3% for balance transfers. It may not sound like much, especially when compared with a high interest rate currently imposed on the debt, but the best way out of debt is to have it cost you as little as possible.

There are a few cautions to make this work, though (assuming, of course, that you’re approved for the card in the first place).

  1. Do not charge anything new to this card. The goal is to reduce your debt, not add to it.
  2. Don’t transfer more than you will pay off in about 14 months. That way, you won’t have a balance when the introductory offer ends and the regular interest rate kicks in (currently over 13%).
  3. Do not, under any circumstances, forget to pay at least the minimum each month before the due date.

As an example, transferring $1400 from a card charging (a modest) 12% and paying $100 per month will pay it off 2 months faster and save you over $100 in interest. Savings are even more dramatic on debts with higher interest rates.

 

As an aside, I’m not getting anything for recommending this card. I just know that when I started digging my way out of debt, offers like these helped me gain traction on the slippery slope of high interest rates.

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