Credit cards provide a convenient source of money–you don’t need to carry large amounts of cash in your pocket. This is especially helpful if you are faced with an emergency. However, the amount owing on a credit card is subject to high interest rates. Like so many Canadian households trying to raise a family, you may easily have excess credit cards and accumulate balances over $9,000 or $10,000. With interest charges added on, you could pay an additional 20% percent or more. If that is the case, then it means you could be paying about $2,000 in interest rates on your credit card balance of $10,000!
When you break the figures down like this, you realize how much your credit card is costing you. If you are among those Canadians who currently face a huge credit card debt due to the high interest rates then what you need is a zero percent balance transfer credit card.
What is a Zero Percent Balance Transfer Credit Card?
A zero percent balance transfer credit card is one which does not charge any interest on your credit card balance for a specified period. This period is usually around twelve months. And as the name suggests, a 0zero percent balance transfer credit card allows you to transfer your existing credit card balance to the zero percent balance transfer credit card and free yourself from the burden of paying interest on what you currently owe. During the time the interest is waived off from your credit balance, you can try to pay off the balance you owe on your other card without having to pay the interest.
The MBNA Platinum Plus MasterCard is one of the leading zero percent interest credit card in Canada offering customers an interest-free period for twelve months.
Why Should You Get a Zero Percent Balance Transfer Credit Card?
As you keep on accumulating credit card debt, you keep adding interest to it, further increasing the total amount you owe. It is like a never-ending debt cycle that entraps you. By having your credit card balance transferred to a zero percent credit card like MBNA, you reduce the total amount you owe in interest rates, making it easier for you to pay off the balance.
Pros of Zero Percent Balance Transfer Credit Cards
- Reduces the amount you owe in credit card balance, making it easier for you to pay off the debt
- Saves you from paying the interest rate amount for the promotional period
- You can switch the credit card and transfer your balance to another zero percent balance transfer credit card before the promotional period is over, allowing you to enjoy an interest-free credit card for a longer duration
Cons of Zero Percent Balance Transfer Credit Cards
- The interest-free period lasts for a limited time and then your credit card balance will be subjected to the regular interest rate
- You may get used to of holding large balances on your credit card that will get you in trouble once the promotional period is over