Best Way To Pay Off CREDIT CARD DEBT in Canada (Pay 0% Interest)

credit card debt is brutal and I hope no one ends up having it but I understand that things can throw one off the boat While others may have been careless and are now going through the pain of getting out of it but once you have it even after you keep making those payments it just doesn't seem to end and the biggest reason behind that is the high interest rate that credit cards charge but don't lose hope the good news is that there are a few steps that you can take on your end to get out of credit card debt and we are going to discuss one potential option that you could benefit from if you don't know about it already you can do this with the help of a credit card balance transfer feature let us understand this with an example and see how it works say you have a six thousand dollar balance on one of your credit card charging you 22 interest on it or about 1 320 a year and you have another credit card with a ten thousand dollar limit and no balance on it you can call this credit card company and ask if they would be willing to do a balance transfer if they do you can use this credit card to pay off the credit card that has a islands and this will not only help you save money but pay it off faster but the whole thing sounds so stupid right because you're transferring library from One credit card to the other and that's all that you're doing but hey there are a few benefits of doing this the most significant benefit is zero percent interest for six to 12 months on sarge transfers yes that's right the credit card company you did the balance transfer with Will typically not charge you any interest for 6 to 12 months let us say if it's 10 months you will save around one thousand one hundred dollars over those 10 months as interest not paid and you can use that extra money to reduce your balance from six thousand to four thousand nine hundred without efforts assuming that you use the savings to pay down the card after the no interest period the company will start charging with this High interest again however you were going to pay that anyways if you still maintained a balance and this way you at least do that on a lower balance of 4900 which will lead to more savings down the road remember that they will charge you a one-time fee of about one percent to two percent on such transfers or about 60 to 120 in this case which will reduce the savings a little but take a calculated decision if you are in a similar situation after this you can try to transfer the balance with a third company and so on till you pay it off ultimately while you do this if you can also use your own savings from your employment or a side gig to aggressively put towards the credit card balance amount then in no time you will realize that the debt is now zero and the best part about this is it will also help you improve your credit score there are other alternative strategies available as well and if you would like me to make a video on it or have any questions on this strategy let me know in the comment section below I will also be making a follow-up video on the most common mistakes while doing a balance transfer so keep an eye for it please support us by giving this video a like so that we can reach a wider audience that is trying its best to pay off its credit card and maybe this video will be able to help them and subscribe to our Channel as we keep coming up with videos on money personal finance and investing to help you make better financial decisions for yourself thank you for watching

As found on YouTube

Leave a Reply

Your email address will not be published. Required fields are marked *