As we have experienced an economic downturn over the last decade, consumers are becoming more and more aware of just how high credit card interest rates can be.  Many college students and young professionals are enticed into applying for credit cards with annual interest rates (APR) in the upper 20’s.  This is because many individuals applying for credit cards do not even check to see what the interest rate is.  As such, over time, these consumers are paying a substantial amount of interest that makes reducing your credit card balances very difficult.

There is a way to alleviate some of the stress of high interest rates if you are able to obtain a credit card with a lower APR and/or an introductory APR of 0% for a certain period of time (usually a little more than one year).  Depending on how much credit card debt you have, you may be able to utilize a lower interest credit card by transferring the balance of your high interest rate credit card to the new card with a low APR.  While this is certainly a possibility in some situations, you should be careful and read all of the fine print about balance transfers, such as how your payments are applied to you new balance and what the consequences are of only being able to make the minimum payment.

When low-interest credit cards offer a 0% APR period, many people fail to recognize that most credit cards will require that you pay the entire balance within the 0% APR period, or else you will be charged the interest on your existing balance.  This is called deferred interest where the interest you did not previously pay is assessed against your total balance after the 0% APR period has ended.  This catches many people by surprise when they see their credit card balance increase.  The interest charge will show up as “deferred interest” on your credit card statement.  This is something that isn’t always made clear to credit card applicants, so it is good practice to read an entire credit card agreement (even though it is very long), and seek the assistance of an attorney if you have any questions about the credit card agreement.

It is important to remember that not all creditors have the same guidelines, so there may be credit cards that will not implement deferred interest, while there are many that will.  This is why it is crucial to understand what you are getting yourself into when applying for a credit card.  With the help of a Kansas City Debt-Relief Attorney, you will be a well-informed consumer who does not fall victim to interest rates that can prevent you from making headway on eliminating your credit card debt.

Contact Kansas City Debt-Relief Attorney Douglas Breyfogle to Schedule a Free Consultation

If you have concerns about your credit card debt, your overall financial health, or if you simply have questions about balance transfers and how best to utilize your credit cards, you should speak with an experienced Kansas City Debt Relief Attorney who helps consumers face credit card debt and find the best way to eliminate such debt in the quickest and most cost-effective way possible.  Kansas City Debt Relief and Bankruptcy Attorney Douglas Breyfogle helps clients with both the bankruptcy process and general debt-management and debt-elimination services.  Bankruptcy is not always the best option for every individual, so it is important to work with your attorney to come up with a plan that will best suit your financial needs and circumstances.  To schedule a free confidential consultation with Douglas Breyfogle, contact our office today by calling (913) 742-8700.