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Low interest credit cards can provide you with the answers you are looking for when it comes to getting free of debt. If you are like millions of Americans, you are probably having difficulty keeping up with the minimum payments on your credit card. In fact, almost 70% of Americans keep a balance on one credit card or more. Similarly, 45% of those with balances pay only the minimum payment every month. Unfortunately, paying only the minimum on a credit card balance can mean taking years to pay it off.

A Glimmer of Hope

Low interest rate credit cards can provide you with the debt-relief you have been looking for. As an intelligent consumer, you can turn credit cards around and make them work for you rather than against you. Since credit card companies are in such fierce competition to acquire and to keep customers, many offer outstanding introductory offers. In fact, there are several cheap credit cards that offer an introductory APR as low as 0.00%. When used wisely, these low interest credit cards can be your ticket to financial independence.

Finding Cheap Credit Cards

Luckily for you, it is not particularly difficult to find low interest credit cards. In fact, a number of major credit cards send mailings directly to your home to offer you a card membership. On the downside, sorting through all of these credit card offers can be confusing and time consuming. For this reason, one of the best ways to find low interest rate credit cards is visit a web site offering side-by-side comparisons. Here, you can view introductory rates, annual fees, and how long the introductory rate lasts. You can also view the long term rate after the introductory rate is complete in order to determine which of the low interest credit cards will best suit your purposes.

Taking Advantage of Low Interest Rate Credit Cards

After selecting and applying for the low interest credit card of your choice, the first step to getting yourself debt free is to transfer your balances from high interest credit cards to the low interest credit card. This will help you start saving money immediately. In fact, a credit card balance of $9,000 with a 19.99% APR will cost you over $1,600 more per year than a credit card with an APR of 1.9%. Be sure, however, to look into possible balance transfer fees or other fees that might be associated with moving your credit card balance from one card to another. Also, low interest rate credit cards may have a higher interest rate on balance transfers, so be sure to be certain of the APR associated with the transfer.

After saving money with the lower APR provided by low interest credit cards, it is important for you to take advantage of the savings to become debt free. Too many people look at the savings as an excuse to spend more or they use the money elsewhere. Instead, you need to send the money you save back to the credit card in order to pay down your balance. After using the saved money on principal rather than interest, you will gradually start to see your balance disappear.

Creating a Budget

Of course, low interest rate credit cards are not the only answer for getting out of debt. Rather, they are one tool to help you get there. To get out of the red, you will need to create a budget that involves sending regular payments to the credit card that exceed the minimum payment amount. In addition, you need to either quit spending money on your credit card or make sure you have enough money coming in at the end of the month to completely pay for the additional debt placed on the card - and this money needs to be above and beyond what you already have set aside for your regular credit card payment.

For more on how to use low interest credit cards to get out of debt, Robert Alan recommends that you visit CreditCardAssist.com.

With all things in life, there will be things that you can pay extra for with credit cards. While most people in most circumstances will be looking for a credit card that gives them the absolute cheapest deals and best rates, there will be some people out there who will be looking for that little bit extra with their credit card and will be willing to pay a premium for these extra benefits.

The amount you will have to pay for a premium credit card will vary enormously when you compare the offers from one credit card company to another. By and large, you should expect that the more you are paying for a premium credit card, the better the card will be and the more premium facilities and extra features the card will offer you. There are some credit card companies that will offer relatively cheap premium credit card options. This might be a platinum card or a similar offer that costs just a few pounds per month. There are even companies out there that will charge you nothing for a so-called premium credit card. Other may charge you a significant monthly or annual fee so the differences can be very large.

The fact that you pay nothing for the credit card does not necessarily mean that it does not offer you premium services, as the reason you have paid nothing for it may be due to the fact that you are an exceptional attractive applicant and the credit card company wishes to attract you to their business. You will generally know how good your credit rating is and if you think that you may not deserve a free premium credit card based on your credit rating, and then you should consider the possibility that the card is actually offering you nothing extra.

The services that a premium credit card generally offers will vary. Some will offer you an attractive reward scheme. This may be a cash back option, or some other reward such as redeemable points or airmiles for every pound you spend on the card.

These reward schemes can be very attractive to some customers because if you spend a lot on your card, you can get a significant amount back in cash or reward and may even get a free flight every year. Other advantages typically associated with premium cards are high maximum spending limits and very good rates of interest. For people that carry a high outstanding balance on their card, it may be worth their while to pay for a premium card that will save them money on interest payments. Other charges associated with credit cards such as international transaction costs and cash withdrawals may be free also.

A recent report revealed that many people are not utilising the reward scheme offered by their credit card company. It should be remembered that the reward scheme is an intrinsic part of the credit card and the use of it enables the consumer to save cash, be it through a straightforward cash back scheme or a loyalty scheme that offers points that can be redeemed against goods.

Peter Kenny is a writer for creditcards-gb
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