Low interest credit card offers will save you money

Want to cut money right off of your monthly expenses without it costing you any more money? Well then keep reading, this article is going to talk about how low interest credit card offers can save you big bucks in month interest charges. To be more specific we'll discuss exactly how much money you could save, how will it effect your debt repayment if you switch to a low interest credit card, and what the possible down falls might be of switching. After reading this article you should be able to decide whether changing your current card to a low interest option is right for you.

How much money could you save with low interest card offers?

This question depends on a couple of things. One, what is your current interest rate, and two, what's your current outstanding balance on your card. The bigger those two numbers are the more you potentially stand to save. A simple example would be, lets say you have $5000 on your credit card and the interest rate is 19%. This is just rough numbers but we'll say you're paying $70 a month in interest fees. So if you make $100 payment, only $30 of that goes towards the balance Scary HUH. If you switch your current credit card to a low rate credit card and cut your interest rate in half you can literally double the amount that you're paying towards your balance, and effectively cut the time it takes you to pay off your credit card debt in half. Talk about killing two birds with one stone, save in interest and pay debt off faster.

Paying down your credit card debt faster

I want to touch on the debt repayment benefit of a low interest credit card offer a little more. I briefly mentioned it above, but this is a big benefit beyond just saving money every month in interest. Lets consider another example. You've been paying $100 every month on your credit card with a higher interest rate. Let's assume $40 of that has been going towards the balance, and the rest covers the interest. Now all of the sudden of these low interest credit card offers comes your way, with a rate of 9% instead of 19%. If you keep paying the same $100 on your credit card each month you're not going to be paying an additional 50% or more on the balance, which means you'll have the balance paid off 50% as quickly. Sounds pretty good huh!  This is important because carrying to large of a debt load is a bomb just waiting to explode, it's more for an entirely different article but none the less something to keep in mind.

What to watch out for with low interest credit card offers

Ok, this section of the article isn't meant to deter you from switching what type of credit card you use, but it is meant to educate you on what to watch for when applying fo 0% APR credit cards and the like. The first thing is introductory versus fixed interest rates. A lot of low interest credit card offers are low introductory rates. This means that for the first 3, 6, or 12 months (what ever the time frame is) you get the lower rate, how ever after that promotional period the rate goes up. You need to know what that rate is, if it's as high as what you have now maybe you should keep looking for something with a bit better fixed rate.

The second thing to watch out for is what the rates on the different card options are. Cash advances, purchases, and balance transfers don't always hold the same rate. So if you use all three of those features on your credit card be sure to take them into consideration when choosing a low interest credit card.