If you have credit card debt and want to get out of it as quickly as possible, then balance transfers are the way to go.
They enable you to make one lump-sum payment and shift your debt from one card to another with no interest added to the principal amount of your debt until the end of the promotional period. Here are some of the best credit card offers on balance transfers at present.
U.S. Bank Visa Platinum Card
This rewards credit card can be used in a number of ways. You can use it to earn points that you can redeem for gift cards, merchandise, or travel vouchers.
There is no annual fee to have one of these cards. This card also comes with a 15-month introductory period that offers 0% interest on balance transfers (but remember, once your introductory period is over, your APR will be based on your creditworthiness).
There are also no foreign transaction fees associated with these cards. If you’re looking for a great credit card to use when making balance transfers, U.S. Bank Visa Platinum Card is a good option to consider.
The Discover it® Student Cash Back: This card offers 5% cashback on up to $1,500 in purchases made in different categories throughout your first year as a cardholder (up to $75 maximum).
There is no annual fee with one of these cards. The APR ranges from 13.99% to 23.99%, depending on your creditworthiness, which is higher than many other options out there, but if you’re looking for a rewards credit card that can help you save money while paying off debt, Discover it® Student Cash Back might be worth looking into further.
Wells Fargo Reflect Card
A new offer from Wells Fargo means you can earn a $200 cashback bonus when you spend $3,000 in purchases within three months of account opening.
You’ll earn 3% cash back at gas stations, restaurants, and grocery stores. You’ll also get 1% cashback on all other purchases—and 0% APR until 2019.
There is a $10 or 3%, whichever is greater, fee for balance transfers that are between $0-$999.99; otherwise, there’s no fee for balance transfers.
Low-interest Credit cards
Low-interest credit cards are a good way to pay off debt if you’re still in an income-earning period. For example, if you have a lot of student loans that have variable interest rates ranging from 4% to 14%, paying them off with an interest rate as low as 0% can help put thousands back in your pocket at tax time.
Of course, it’s not always simple—for example, many balance transfer credit cards charge between 3% and 5% on new purchases made during the first twelve months.
That said, if you plan ahead for it, using one of these cards is a great way to get out of debt faster and save more money (especially when paired with cashback credit cards).
Simple tips to help you get out of debt
If you’re carrying a balance on your credit card, there are some simple tips to help you pay off that debt. Since one of your primary goals is to get out of debt fast, you want to take every advantage that will allow you to do so without sacrificing much in way of comfort.
First things first: Pay more than the minimum payment. You can’t make a huge dent in what you owe unless you put a significant amount toward it each month.
Forget about making every dollar count—pay at least double your minimum payment, if not more. And be sure to ask for an interest rate reduction or apply for a balance transfer offer if available; even 0% interest can save money over time and should be taken advantage of while possible.