by Bonnie Ferrar

Created on: March 07, 2009   Last Updated: April 03, 2009

As the global economy continues its downward spiral, consumer debt continues to increase. While some people sit back, pay the minimum balance and hope that in time their debt will be resolved, other, savvier consumers, realize that unless they find a credit card with a low Annual Percentage Rate (APR), the odds of paying off their balances aren't very good. While 0% APR credit card offers might seem like a logical choice, think again. You may be surprised to find that most of those "free interest" credit cards come with charges and fees that add up to quite a hefty sum. As a result, a balance transfer card is not necessarily right for everyday spending. In fact, that 0% APR balance transfer credit card may cost you more in the long run. You can outsmart the credit card companies though, IF you know how to play the game. Before you settle on a balance transfer credit card, there are some things you may want to consider.

If you carry around debt, you need to compare credit cards to find one that offers a low APR. The lower the interest you pay on your balance, the quicker you will pay off your debt. The best credit cards offer APRs fewer than 10% and will allow you to pay off your debt in the least amount of time. Many credit cards charge in excess of 16-25%, which means that every month, more of your money is going to pay off interest alone! While this seems like a no brainer, credit card companies make quite a hefty profit on consumers who don't pay attention when their rates rise. In fact, many consumers were surprised to learn exactly how much money they paid in interest alone! When you search for credit cards on the Internet, always compare credit cards side by side to be sure you are getting the best deal.

How does a Balance Transfer Card Work?

Balance transfer cards are very popular these days. Many offer an amazing rate for balance transfers, while some even extend that great introductory rate for purchases as well. Once you are approved for the credit card, you can then transfer your existing balances all to that card, provided you don't go over the limit. As always, you should compare credit cards before you choose one, so you can be sure you are settling on the best credit card for your circumstances. Virgin Money MasterCard for example, offers new customers a 0% introductory rate on all balance transfers for 15 months, while the Royal Bank of Scotland Platinum MasterCard offers a 0% rate for just 13 months. But buyer beware, once those rates expire,

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