Finding a credit card with zero fees
According to Credit.com, U.S. citizens have more than $800 million in revolving debt. A significant portion of this debt is credit card debt. To exacerbate the matter, those who have poor credit scores owe even more — with an average balance exceeding $5,000. Credit card debt can be one of the most restrictive and destructive financial forces in the home. One of the best ways to lower debt is through effectively managing credit card debt. One way that this can be done is by finding a credit card with zero fees.
Effectively Reducing Credit Card Debt
There are a number of ways to reduce credit card debt. One way is to negotiate a lower interest rate with the credit card issuer. A significant amount of credit card debt is accrued because of high interest rates. By contacting the credit card company directly, a user can normally negotiate a lower interest rate. One thing that the cardholder has as an advantage is the fact that the credit card industry is highly competitive, meaning that credit card companies are willing to go to great lengths to keep existing customers.
Another method that is effective in lowering credit card debt is to consistently pay more than the minimum payment. When the card holder only pays the minimum, they are in essence paying interest without significantly reducing the principal balance.
One of the most effective ways to reduce credit card debt is by finding a credit card that offers zero fees. One of the ways that credit card companies increase their revenue generation is through the application of annual and penalty fees. Finding a card with a low interest rate and no fees can literally save a card holder hundreds of dollars per year.
Finding a Zero Fee Credit Card
There are a number of ways to locate zero fee credit cards. As mentioned earlier, the level of competitiveness in the market necessitates the need for companies to offer incentives to savvy credit card users who are looking for relief.
- Using credit card sites, such as CompareCards.com, NerdWallet.com and CreditCards.com to locate the best card offers is one way to find a number of zero-fee offers. As a general rule, the majority of these services are free, and they provide a list of options to choose from. It is important to evaluate these opportunities carefully to ensure that the card company is presenting an authentic offer for zero fees.
- Contacting your current credit card company would be another viable option. Almost all credit card companies will have a number of different plans. The “zero fees” plan will only be presented when requested or for users that will carry large balances — allowing the card companies to generate a significant amount of money through interest.
- The user can also work with a debt consolidation service to find the best possible service. There are many debt consolidation companies that function as nonprofits — offering their services for free — while others offer their services at a reduced rate. An added benefit with going through a debt consolidation service is the fact that they will also help you manage your debt in order to get it under control. Organizations such as ConsumerCredit.com and InCharge.org are good resources for finding a zero-fee credit card
By finding a low-interest, zero-fee credit card, a credit card user can transfer credit card debt from other cards that have higher fees and rates. This is the first step in reducing their overall debt. It is still extremely important that the user develop a budget and spending plan that will allow them to effectively lower their credit card debt, by reducing credit card expenditures while consistently paying off the existing balance.
There are literally hundreds or zero-interest cards available. The key is for the user to find the one that is most suitable for their particular situation.