Like it or not we’re stuck in a downward economic cycle. The good news is that the economy always pops back. Just like people, it has some down days, but then picks itself up, dusts off and goes back to normal. The bad news is that we don’t know when the economy will pick up and get back to where we want it to be.
In the meantime, many people are struggling. The cost of living has been consistently going up, while pay scales are not keeping pace. If you have a job you are not going to say anything about that lack of pay increase because you’re just happy to be working, as you see many companies around you laying employees off or closing their doors altogether.
The current economic situation is a recipe for major debt to be piling up.
Most people came into the economic downward trend with some amount of debt accumulated. With the increase in the cost of living, expenses have gone up and there is less money to pay down that previous debt. Interest is being tacked on month by month and no matter how hard you try your debt may be getting deeper instead of going away.
What can you do?
One solution is to change the way you are paying off your debt. If you have a loan or a Credit Card holding all that debt, you are most likely paying a good chunk every month just in interest. Instead you could pass on paying interest and just work on the principal by using balance transfer credit cards.
Balance transfer credit cards are just what they sound like, cards that you can use to transfer your balance from other cards and loans to one card.
If you’re thinking this is no different than the situation you are already in, except that you have all your debt on one card, think again. Many of the best balance transfer credit cards offer a little something extra for deciding to use them, they are 0% interest balance transfer credit cards. This means when you transfer the balance from your other cards or loans over to this card, you will not have to pay any interest for a predetermined time. Others have very low interest rates that won’t keep choking you.
When you are selecting the best balance transfer credit card you should make sure to look at the duration of the 0% interest or low balance transfer interest offer. Most balance transfer credit cards offer these types of deals for 6 months, 8 months, a year or more. The longer the better as that is more time you have to pay off your debt without seeing it grow due to interest.