It must have been no less than a feast to enjoy in the 0% credit card period, but unfortunately it does not extend forever! It must be really hard to accept the fact that you are reaching the end of the offer period. Are you one of those gearing up to take the hit?
Every year begins with a happy note for many who start off consolidating their finances by grouping all their debts under a credit card that is offering them 0% interest.
For those who chose to do so in 2009, they were offered a period of just over 14 months to enjoy this liberty and now the end of the phase seems to be fast approaching. Considering the huge hit it has been, there are surely thousands of people who have tried to streamline their purchases during the beneficial period.
While the euphoria ends, you must be realizing that you have to now bear close to 17% interest for the debts you owe to the bank. While a few have successfully made the repayments in the 0% interest period, there are many who could just not succeed in doing so.
Here are some options you can explore if you want to handle the situation effectively:
A balance transfer is Still a Viable option
The good news is that you can still think of another balance transfer now. It would surely not be as simple as the 0% transfer you have enjoyed so far, but it is still not impossible. If you have successfully earned yourself a good credit rating, chances are that you can find relief through balance transfer, though with a little struggle.
The most popular transfer deals being spoken about now is that being offered by Yorkshire Bank and Clydesdale Bank. They are offering a 0% interest free period for 16 months and their transfer charges sums up to a mere 3% of the amount.
After the interest free period, you will have to shell out 16.9% as the annual percentage interest. Try to make use of the offer, but avoid any new purchases with the card as it could burden you later.
Think of a Low Rate Credit Card
If you have a realistic approach and plan your budget, you will be able to know if you can repay the debt in the 0% interest period. If you have a feeling that it is impossible, give prominence to the low standard credit card that will relieve you of a high interest rate.