0% Credit Cards in the UK
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Brand
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Is
it good to consolidate my other Credit Cards to the 0% card? |
Whether or not to consolidate your other credit cards onto the 0% card will depend on several factors. First, you need to know what your debts are. Make sure you have the current bills from all your current credit cards. Now add the amount you owe together for a total amount. Is this total amount something you would be able to pay off in 6 months, 9 months or a year? If you would be able to pay it off within a specific time-frame, you may be making a good choice by consolidating your cards onto the one with 0% APR (annual percentage rate). Look at the current APR interest you are paying on your credit cards. When you shop for a 0% APR credit card you will still want to make sure that the APR after the initial time period is less than what you are paying now. This will ensure that even if you cannot get the total amount paid off within the 0% period, you will still be paying less in finance charges than you are currently. Some other things to compare when shopping for a credit card are incentives. Some cards give Airmiles, others give a certain percentage of cash back, while still others offer points good towards other purchases. If these are something that interests you, then go for it. However, be aware that if you leave a balance that then has interest applied to it, you will most certainly be paying more than what the incentives are worth. The credit card companies bank on the fact that you will pay them back for the incentives with interest. Financial experts say that if you can control your spending on the 0% credit card, it can be a useful tool to help consolidate your other debt and get back on track. You do need to show some restraint and make sure that you don’t start filling up the new card as you did with the old ones. After all, that’s what got you into debt in the first place. |
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Kinds of Cards |
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Copyright 2008 0% Credit Cards UK Guide Articles
By Kate Spencer. All rights reserved |
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