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Research: Beware of the Pitfalls of the Zero Credit Card Balance Transfers -

It is certainly tempting to make a Balance Transfer that has a 0% charge. Free money, right? But how come some of those who took this plan have more bills to pay and are left with more debts that are higher than their recent credit card account before the transfer?

Zero credit card offers can have pitfalls. Banks and credit card companies have a way to gamble with people and tempting initial offers are a few. With the new credit card laws and the current economy, credit card companies have to get back what they should have earned before the laws and the fall of the economy. Just like people, these companies have to struggle their way back to a healthy life due to heavy default risks they have undergone through the previous years.

Learn how to avoid pitfalls with a few steps:

1. Compare credit cards.

Before availing of other credit cards, learn to compare. By comparing credit card charges, rates and benefits, you will be able to foresee your future earnings and you can keep a budget wise cash account. By comparing credit cards, you will be able to know which the best card is for you so you won`t be regretting much in the future.

2. Read the fine print

The always number one rule when applying in a credit card accounts. Read if the texts about accruing interest at the usual interest rate after the period of the charge free promotion. A lot of cards charge interests current and future purchases made within the promo period despite them saying that they charge nothing for the purchases made during the duration of their promo. Read well about other charges, too. Some cards also require two charges monthly and you might end up paying for the new card than the old card.

3. Pay on time.

Missing a payment may charge you fees and higher interest rates. Try your best to pay at least at the exact due date. If you can minimize your total debts before the due dates, It will keep the credit card companies from charging you more while you weren`t paying it. It will keep the burden off your shoulder and would even heighten your credit score.

4. Be a disciplined customer.

Shopaholics tend to pile up a lot of debts due to their shopping spree. And at the end, they have to do multiple jobs at the same time to come up with enough cash to pay the debts on time. But by being disciplined, they can reduce their stress with having enough money. Learning to prioritize things is the number one step. If you are one of them, postpone buying that cute little top or that cool shades in the mall. If you need to pay your telephone bills now, pay that up first before going to the mall.

5. Learn to invest.

If you have available funds after paying the due date debts, invest those funds on short term investment vehicles to grow your money and be able to cover up all future debts. You`ll even have extra cash to pay purchases in cash, no more future debts.