Sky Mortgage

One of the most popular features on the credit cards is 0 balance transfers, especially as a part of introductory rates. The rates on the old cards are too high which cripple the users financially hence people use this feature frequently when they purchase a new card.

For at least the first six months your new credit cards will have the rates lower than the your existing credit card. Companies use this tactics to lure the customers towards them and make them habitual to use their card instead of the old one.

The company gives their 0 payment transfers as an incentive to the new customers to switch away from the old company. If the company is really providing a low apr card, it is undeniably an excellent deal for you.

But be careful, sometimes these types of deals can be so luring that you would just carelessly go spending on and on. Later you won't be able to get new credit cards with low 0 balances and low apr. Consequently, instead of the low rates you have been paying, you will have to pay higher rates for your cards. Of course this will also result in paying lots of money to transfer your balance. I have myself once faced this situation.

At a time I was working on a temporary basis in a low-end service industry, I lost my job while paying for my house. Mine salary was good enough then but with my mortgage payments, I was racking up debt. Instead of trying to settle the high interest debts I decided to use the low apr credit card to cover them. In the beginning this was a great idea but soon the interest rate of the card went on increasing and instead of mine debts decreasing they went on increasing further.

After six months when my six-month low apr offers ended I tried to get the credit card of new company with low apr. This would have helped me to reduce the interest rates and at the same helped move the debt around, but to my utter surprise I found that no one was offering them any more. They did not even bothered to contact me. Meanwhile my debt went on increasing.

Luckily, I found a new job in ad agency and started making the income as I was doing earlier. However the damage had already been done, even after six years I'm still paying the debts that I had accumulated during that period.

Getting a 0 balance transfer credit card means you should be more careful while spending without getting carried away by low rates. You are yourself responsible for any spending and it is you who have to pay the debts accrued.