Are you one of those people who carry a credit card balance? I use my line of credit for any long term debt in my business. I never believed in paying credit card rates, so I never carried a balance. I am just too cheap…
But I do know individuals and businesses that have had long standing balances on their credit cards. We have ongoing discussions with clients on the need for reigning in spending and reducing costs to allow for the elimination of the credit card debt. It has worked for some, but not always for others.
But now there are a few banks in their search for new clients who have created a zero interest credit cards for 12 to 18 months. I have recommended these cards to those clients who are carrying large credit card balances.
Think about it, if for a full year you made the same payment, but with the payment went only towards principal then the outstanding balance would be decreasing. Which would save you money in the long term, even if not paid off when the introductory term expires you would have less interest to pay on the remaining balance moving forward. Because the principal balance would be much lower than it was before.
But this concept is to reduce your debt. Not to get a card with a higher limit and go on a spending spree. Bit is to conserve cash, lower debt and have a better future.