Rise of Zero Percent Introductory Rate Cards Motivates Atlanta Consumers to Improve Credit
Tired of paying 15% or more annual interest on your credit cards? If you've been taking care of your credit, you might be able to do something about it.
After a couple years' hiatus, the coveted 0% introductory rate credit card is back, according to a story in Smart Money. If you've got good credit - something you can achieve by paying your bills on time and carrying a low balance in relation to your credit limit - you're probably already receiving the applications and preapprovals in your mailbox. If not, look at the opportunity as yet another incentive to improve your credit rating, say Atlanta bankruptcy attorneys.
More than 71% of borrowers with good credit are eligible for cards that require little to no interest for an initial introductory period, as opposed to just 53% a year ago, thanks to falling credit delinquency rates as more people buckle down and improve their finances. And unlike the short low-rate introductory periods of the past, these ones often last for up to 21 months - that's almost two years. But just how much you'll benefit depends on your financial situation.
Cards with 0% rates work best for folks who don't carry large balances - and ideally, who pay off those balances every month or so, before they get too big to handle. Better yet, these cards are perfect for customers who want to use the money they're saving on interest to pay down debts on other, higher-rate cards. Of course, if you're already having trouble paying your other credit card bills, a new no-interest card isn't going to solve all your problems - in fact, it might encourage you to keep adding debt when you should be subtracting it. The idea isn't to accumulate as much debt as possible without paying interest - it's to have the option of no interest in your back pocket, just in case you need it.
Despite what some people might tell you, there's no miracle cure for debt - fixing your finances takes work. Fortunately, even the biggest debts can be managed with a little effort. If your debt has grown too large to shrink alone, maybe it's time to turn to a professional. At DebtStoppers, our Atlanta bankruptcy attorneys can determine whether bankruptcy can offer an affordable way to pay down your debt so you can wipe the financial slate clean and start fresh. Find out more for free when you try a personal debt analysis today. Remember, the fastest way to lower your interest rate is to lower your debt.