How to Get the Most from Your Credit Cards: Live Interest Free, and Get so Much More

With their high interest rates and annual fees, credit card debts are helping to keep so many Americans mired in seemingly insurmountable debt. With a little time and diligence, however, most people can not only get out of debt, but can make their credit cards work for them. By taking a little time, organizing your debt, and looking for cards that offer maximum benefits, you can actually end up ahead by using your plastic.

The first thing to do to get the most from your credit cards is to stop paying interest on your balances. By transferring all your credit card balances to cards with introductory 0% interest balance transfer rates, you can cut down your payments dramatically and keep your current balances from rising. Make careful note of when these 0% rates expire- most offers allow you 12-24 months of 0% interest- and move the balances to new 0% interest balance transfer accounts if necessary while continuing to pay off the accrued debt.

Next, separate your credit card needs into three categories: debt reduction, emergencies, and everyday life. For these three uses, you will be looking for different things in your credit cards.

We have already covered debt reduction. Debt reduction credit cards should be comprised solely of accounts with 0% interest balance offers. Paying interest to credit card companies is simply giving away your money, and it should be avoided at all costs. Most Americans do not realize just how much money they are paying in needless interest every year. With some simple transfers of balances and careful record keeping, you will be amazed at how much more quickly you can pay off your debt when you remove interest payments from your financial picture. NOTE: read the fine print on the 0% interest balance transfer offers carefully. The most important detail to consider is late payment penalties. Most of these offers will negate your 0% interest status if you make even one late payment. Should this happen, and interest kicks in again, immediately accept another 0% interest offer from another credit card company, and move that balance. Paying interest is BAD!