Holiday Credit Card Balance Growing Interest? Here’s How to Save Money

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Gift-giving, entertaining and travel can all take a big bite out of your budget around holiday time. If you found yourself charging more on your credit cards in order to enjoy the season—and now are unable to make anything more than the minimum payment on them—you’re probably dreading how the interest on the unpaid balance will add up on those cards over time.  Fortunately, there’s a solution that can save you money—balance transfer cards.

This type of credit card allows you to move the amount that you still owe on your card (and on which you’re paying interest) to a card that won’t charge you interest—at least not for a limited period of time.

Wouldn’t you like to know that all your hard-earned dollars are going to actually paying down your debt? Depending on how much you owe, you could save hundreds of dollars in interest over the course of a year or so.

Although this kind of card can be a good deal, there is a cost associated with it. The bank issuing the new card will charge you some kind of fee for moving the balance of your old credit card to your new one, either a flat fee or a small percentage (like two or three percent) of the amount you’re transferring. 

You should also note that some banks may not pay off your existing credit card directly, but may deposit the money that you owe on your first card into your bank account so that you can pay off the balance on that card.

Comparing 0 interest credit cards

It’s not only people with outstanding credit who can qualify for 0 interest credit cards. At, we have offers available for people with credit ratings ranging from fair to excellent. (Of course, the better your credit rating, the more options that you’ll have when it comes to deciding which card will work best for you.)

The terms and features of each of these balance transfer credit cards vary, however, so you’ll want to check out the details of each carefully before you apply for any of them. Here are some of the questions that you should be asking:

  • How long is the interest-free period? In other words, how long will I have to pay down the balance I’m transferring before I’ll need to pay start paying interest on whatever balance is left? (Some interest-free introductory offers last six months; others can extend for 18 months or more.)
  • What interest rate will I be charged once this initial no-interest period ends?
  • Will I be charged interest on any new purchases I make on this card, or will they be included in the interest-free balance until the introductory period ends?
  • Are there any special perks that I get with this card? Incentives may include things like a cash back bonus when you make your first purchase on a card, or a certain percentage of cash back when you use your card at certain banks, restaurants, gas stations, etc. (If you get cash back, you can even use the money to pay off your balance faster.)

    There are also travel cards available that will give you preferred extra airline miles, preferred boarding status on flights or discounts on cruises or other recreational opportunities.
  • Is there any annual fee with this card? (Most don’t have them, but it’s always a good idea to check.)

You don’t have to be paying interest in May on purchases you made last December. Check out our site today for some great offers on credit cards that will help you reduce or eliminate that credit card debt without paying interest.

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Please note your financial situation is unique and our tips & advice presented here may not be appropriate for your situation. recommends that you seek different advice & opinions from your own accountant or financial adviser who understands your individual circumstances before making any important decisions or implementing any financial strategy.