When you’ve finally decided to buckle down and get rid of your debts, one of the first pieces of advice you’ll find anywhere about how to approach the problem is to line up your debts by interest rate with the highest one first, then make minimum payments on all debts while putting a big extra payment toward that highest interest debt at the front of the line. When that debt is gone, you move on, putting your big extra payment each month toward the debt that’s now at the front of the line, and so on until the line is empty.
Of course, one way to make this debt lineup a little easier to tackle is to look for ways to reduce the interest rates on those debts before you line them up. You might do things like consolidating your student loans or refinancing your home, but another option that people often use is to sign up for a new credit card with a 0% balance transfer offer.
How do balance transfer offers work?
When you sign up for a card with a 0% balanc… Read More