The Discover it credit card is arguably most recognized by the name, Rewards Plus. This card offers a zero percent introductory APR on balance transfers (including purchases) for up to twelve months. And this introductory rate is just for the first thirty days of the agreement, so you get to save immediately on interest. This balance transfer offers up to an additional five percent on all purchases for a limited time. You have to be careful though, as the 0 percent APR from Discover it may come to an end in July. Anytime during the twelve months the balance transfer offers are valid, the interest rate is likely to be higher than usual.
The Discover it balance transfer works out to be a good option for you if you find yourself in debt and struggling to keep up with monthly payments. It will enable you to pay off your existing debt more quickly, which means that you will have extra cash on hand to make purchases without having to go into debt. If you have a substantial amount of debt already and are finding it difficult to meet payments on a regular basis, then this is a great way to be debt free sooner. You can then use the extra cash to pay down the balance on your current card or borrow money against your equity loan.
There are other cards offering balance transfer options, so it may be worthwhile finding out about them as well. These cards generally have either lower or no balance transfer fees. They may also offer longer payback terms or an attractive rewards scheme. The longer the term, the less you will have to pay back in interest charges, so it might be worth finding a card with a longer term if you want to avoid paying balance transfer fees. You will also find that some cards offer cash backs or bonuses when you make purchases.
Most introductory periods are usually good for at least three months. During this time, you will be able to pay off your balance at a reduced interest rate. This means that you will be able to pay more each month towards the balance, therefore reducing the total amount you need to pay each month. At the end of the introductory period, most balance transfer cards will require you to take out another loan, which means that you will have to pay interest on this new loan, not the balance that you had paid off in the introductory period. It is important to remember that although you will not have to pay interest on the transferred balance, you will have to make monthly payments until the full amount has been repaid, and these payments could be higher than the payments you would have had to make on a normal card.
One of the main advantages offered by introductory apr periods is that you can save money. You will be able to reduce the amount you need to pay every month towards your debt, which means that you can free up some cash each month. However, even though you do save money in this way, it is important to remember that the longer you remain with the same card the more you are likely to spend money. This means that after an introductory period your debt consolidation loan will be due for repayment and you will have to start paying interest on the loan. In addition to being more likely to use your credit card, if you continue to use your card you are more likely to get into debt again.
Once you have finished the introductory period the chances are that you will wish to reduce your credit card balances. If you transfer your remaining balance to another introductory offer card then you can free up some of your cash each month, which can help you to reduce your debt. Of course, before you transfer any of your balances to another offer, you should check with your current issuer to see whether they will allow you to transfer your balance.
You may find that you can pay off your debts faster by changing your spending habits. For example, if you are someone who likes to go out to eat a lot but only buy things that you need in bulk, then you may benefit from reducing the amount of food and other consumable purchases you make each month. You can also use this method as a way to reduce the amount of interest you are paying by paying off the smallest balance first. By doing this you can free up some cash each month which you can use to reduce your balance or get out of debt.
Once your spending habits change, you may no longer wish to use your credit card to pay off your debts. If you transfer all of your balances to an interest free introductory period card, your spending will soon stop. This leaves you free to think about whether or not you want to continue paying off high interest payments or use some of the interest savings to reduce your debts. Ideally, you should choose the option that best suits your particular circumstances so that you can avoid having to make any changes to your current monthly budget.