| Keeping interest payments down is a sign of | | | | a low balance transfer rate for the life of |
| good money management and credit card tarts | | | | the balance. There are several of these to |
| have got it down to a fine art. Credit card | | | | choose from. Many of them also offer other |
| tarts take advantage of 0% balance transfer | | | | incentives, so it is worth shopping |
| deals to make sure they never pay interest on | | | | around.Second, the borrower needs to find a |
| their credit card debt.Credit Card TartsIt | | | | card that allows a fee-free balance transfer, |
| works like this. The borrower applies for and | | | | as well as credit card cheques with a 0% |
| gets a credit card that offers 0% on balance | | | | interest rate. There are a few cards that |
| transfers for a fixed period. Usually this is | | | | meet these criteria.Transferring The |
| six months to a year. The borrower transfers | | | | BalanceThird, the borrower needs to do a |
| the existing debt on to the credit card and | | | | balance transfer from the low rate card to |
| makes repayments as usual. Since no interest | | | | the 0% card. This means that the 0% card will |
| is being charged, all repayments are reducing | | | | be in credit. Finally, the borrower can write |
| the amount of money owed, which is good news | | | | a credit card cheque from the 0% credit card |
| for the borrower's long term financial | | | | and pay it into his or her current account. |
| health.At least six weeks before the 0% deal | | | | The net effect of this is a loan at a much |
| is due to expire, the borrower applies for | | | | lower rate than normal bank loans.Even for |
| another 0% credit card and transfers the | | | | people that don't need a loan, this can be a |
| remaining balance on to the card. This means | | | | good way of making some cash, especially if |
| the borrower has another period of clearing | | | | they are able to stash the cash in a high |
| debt without paying interest. This strategy | | | | interest account.What About The Credit |
| can be repeated several times, though many | | | | Rating?One danger of this strategy is if |
| credit card companies have got wise to it and | | | | borrowers make too many credit card |
| are now charging balance transfer fees.Low | | | | applications in a short space of time. This |
| Cost LoansThis is a great strategy for people | | | | can count against them in a credit file. It |
| who are trying to reduce debt, but it turns | | | | is also essential to make at least the |
| out that it can also be used for debt-free | | | | minimum payments on the required dates to |
| people who want to get a low cost loan. To do | | | | maintain a good credit history.Joe Kenny |
| this, borrowers need to find two different | | | | writes for the UK Loans Store where you will |
| types of credit cards. Debt free people with | | | | find information and reviews of the latest |
| a good credit rating should have little | | | | loans and offer more information on secured |
| problem with this strategy.First of all, the | | | | loans and other loan topics available on |
| borrower will need to find a card that offers | | | | site. |