If you are in debt, very often you have to juggle your finances. And if your debt load is too much, no amount of juggling your finances will serve the purpose. So, it is best to opt for a debt help option that can help you to manage your existing credit card debts more systematically and judiciously.

You will come across many credit card consolidation companies that can help you in this regard. However, prior to hiring the services of these companies make sure you check the credibility as many firms have tricked debtors into fraudulent activities. Credit card consolidation offers the unique opportunity to merge all your debts into a single debt account that makes your debts manageable. You will be able to deal with a single debt account. It also helps you to keep track of the payment you make each month with the help of the new repayment plan that is worked out as a result of the negotiation that takes place between the credit card consolidation firm and your creditors. One of the main advantages of credit card consolidation is you get to enjoy reduced rate of interest and consequently lower monthly payments.

There are 2 ways of credit card consolidation. One way is to manage your existing debts and that is achieved with the help of a credit card consolidation program. And the other is taking out a credit card consolidation loan that enables you to avail a loan that is equal to the total amount of credit card debt you owe.

A credit card consolidation program is usually preferred over a credit card consolidation loan. This is because when you take out a consolidation loan, you may have to use collateral (if you opt for secured loan). The collateral used in majority of the cases is your house. So, if you fall behind on payments, you may end up losing your home. And if you are not using collateral (unsecured consolidation loan), you have to make payments as per high interest rate. So, the best way to consolidate credit card debt is to enroll for a credit card consolidation program in which you not only enjoy lower interest rates but you don’t take on additional financial responsibility. And if you are able to manage your debts effectively, you will never be far from financial freedom.

• Can you qualify for a credit card with a 0% introductory interest rate? – Some of the general qualifications were mentioned in this article, on using credit cards with zero percent interest rates, but just to give you a brief refresher, you need a great to excellent credit score, and you can’t have the reputation of being a “card hopper” – a customer who’s known for hopping from one card to another.

• Can you budget accurately and responsibly? – Getting approved is obviously a necessary requirement to pull off making money with a credit card, but this is a close second.  In fact, if you don’t think you can keep a tight budget during this three to nine month process (depending on the introductory rate), it can easily wind up back firing in your face.

• Understand that this isn’t a get rich quick scheme – It’s a process that under careful planning and tight budgeting, can allow you to make a little extra money from something you’re probably doing anyway – making purchases with your charge card.

So here’s the plan.  Apply for a zero interest credit card that suits your fancy.  Again, what you’re looking for is one with a 0% introductory rate that is extended for enough time to make it worth your while – you can find several that will allow at least three months, as well as a card that has a reasonable balance after the intro rate ends – 15%-17.5%.  It’s always a plus to choose a card without annual fees  The Citi Platinum Select Mastercard offers zero percent for six months, an ongoing rate of as low as 11.99% after the introductory offer, and no annual fees.  Continue here for more credit cards with zero rates.

If your application is accepted, set up a high yield savings account at around 1.5% APY with no fees or strings attached – this site mentions some quality high yield savings accounts.  Once you’ve set up your credit card and bank account, go out and spend wisely on your carefully budgeted plan.  If possible, put the money that you plan to charge to the credit card into the high yield bank account before you start.  Since not everyone has that option, make deposits into your savings that coincide directly with your credit spending.  For example, if you charge $100 to the 0% credit card, deposit $100 into the savings account.

When it comes time to pay off the credit card at the end of the introductory offer, withdraw the money you’ve been accumulating from your savings and pay it off.  The interest compounding in your account for the six months, though probably not much, will be yours.  It’s not going to make you rich, but if you spent $5000 with your card, and put away the money ahead of time into a 1.5% yielding savings account, you’ll wind up with a “free” $75.  You have to love getting paid to spend money!

For further information on this process, shoot over to this guide for some great additional tips on making money with a zero percent credit card.

Intro APR - If you look up at the URL, you might guess that every card that I mention on this site will have an Introductory Annual Percentage Rate (Intro APR) of 0%.  This means that if you qualify for a zero percent credit card, for a predetermined period of time, whether it be three, six or 9 months, any charges that you make to that card will be interest-free.

Intro Period - This is the amount of time that the Intro APR holds true.  As previously mentioned, most credit cards of this nature will fall into the 3-9 month range.  Once the period is up, your rate shifts to…

Ongoing APR - The interest rate charged after the introductory period.  Zero percent credit cards won’t always live up to their namesake – this is an extremely important factor to consider.  There will be a set minimum, usually somewhere around 12%.  Depending on your credit score, you may be paying a lot higher.

Default APR - This is any rate that you are charged outside of your ongoing interest.  If you fail to make a minimum monthly payment, or go over your allowed credit limit, this sucker will kick in.  You’ll find that most companies will charge you nearly the max allowed by law – typically in the 30% range.  Pay your balance, people – this applies to all credit cards!

Rewards - This should be pretty self-explanatory, but rewards are any favorable returns you receive for spending with your charge card.  They can come in the form of cashback, gift certificates, frequent flier miles, gas discounts…the list goes on, and depending on what rewards you’d prefer, some options will suit you better than others.

Transfer Fee Rate - This applies to 0% balance transfer cards.  When you want to transfer what you owe from one card to another, they aren’t going to let you do it for free – at least not at 0% for 12 months.  They’re going to charge you a percentage of the balance.  3% is a reasonable rate.  You’ll also want to mind the minimum and maximum fees; many card companies won’t allow you to transfer a balance that pays them less than five dollars (you’re not worth their time).  On the flip, you’ll want to look for caps on fees as well – if you’re carrying a large sum of debt, you may be paying a wicked transfer fee.

Ok, so now you’re hopefully a little more familiar with what to look for when choosing a 0% credit card.  Go out there and choose wisely!

Not only has the count in available plans dropped, but the factors that go into choosing a 0% credit card have become less-enticing as well.  Where a year ago, it wasn’t uncommon to find 0% balance transfer plans with intro periods lasting 16 months, the new average is barely breaking 9 months.  Those who are smart enough to take advantage of a zero percent balance transfer card will find they, as a whole, will have less time to take advantage of the plan.  It’s not just balance transfer cards either.  Similar trends are evident in purchasing plans as well!

So is all hope lost?  No, not right now anyway.  There are still over 50 legitimate zero percent credit cards available to those with outstanding credit (outstanding as in excellent.  Why didn’t I just say excellent?  Shut up, that’s why!), but I can’t stress this enough – if you’re planning on using one of these, do it responsibly.  You could be in an absolute world of financial hurt if you drift into that ongoing rate zone still carrying a heavy balance.  Also, not that every moron with a credit card is going to read this article, but if people continue to hold out on their credit lenders, the zero interest charge card will go extinct.  We don’t want to make a dodocard, do we?  Ok, that was weak, I know.  Nevertheless, despite the things that can go horribly wrong with a zero interest credit card, a responsible holder can do plenty of right.  So, for the sake of those of us who want to do plenty of right, hope and pray that these fine creatures stick around for a little while longer.  Take advantage of zero percent credit cards while you still can!

Discover More Card – Here’s the haps on this fine piece of plastic.  First off, you’ll notice, it has a freakin’ American flag on it – I know, you’re already sold.  Not only does it boast your patriotism, but it has one of most incredible cashback rewards programs in the industry.  In addition to its killer cashback incentives, you can use it to opt into anything from top-notch fraud protection to half a million dollars in travel accident insurance.  Regarding the zero interest factors, you’re looking at 0% for six months on purchasing and 12 months on balance transfer.  The ongoing APR rests as low as 11.99%, and with no minimum transfer fee, and no annual fee.  The only relative downside to this American wet dream is that it carries a 5% transfer fee – not terrible, but not great either.  This card would be ideal for purchasing programs.  Perfect if you plan on attempting to make money using zero interest credit card.

Citi Platinum Select Mastercard – This is an all-around winner.  Platinum has grown to be a rather cliche adjective in not only reference to credit cards, but financial and service industries as a whole.  There’s nothing cliche about this card.  It lives up to its platinum namesake by being an all-around great zero percent card.  Although it doesn’t boast a rewards program quite as robust as the aforementioned Discover More Card, it more than makes up for it with Citi’s renown service standard.  You can get a hold of a representative 365-24/7, whether it be to inquire about your plan or implement Citi’s industry-leading fraud protection service.  Concerning the 0% aspects, it’s perfect for balance transfers – carrying a fee of just 3% – the only caveat being a six month intro period.  On the other hand, the purchasing program also carries a 0% interest plan for six months.  If you qualify for this card, and you’re not an idiot, you won’t lose.

Public Savings Bank Visa Black Card – This is a card targeted toward you crazy folks who screwed your credit up, but still feel you deserve a zero percent interest credit card.  Your wish has been granted.  This card not only allows you to do your purchasing interest free for 6 months, but it carries both an ongoing, and default APR of just 11.24%!  All payment activity on this bad boy is reported directly to the three major credit bureaus, so if you’re trying to swim back up to the surface, you’re doing it with the right (hopefully not wrong) people watching you.  The only real downside to this card is that it doesn’t offer a 0% balance transfer plan.

There you have it – the cream of the crop of zero percent credit cards.  Plan, choose, and spend wisely!

So, we’ve established that the wonder rate won’t last forever – that’s ok – a lot of you won’t even qualify in the first place.  “Whoa!”, you say, “My credit score is pretty good, buddy”.  That’s great – you should go buy a house!  However, just having a “pretty good” credit score isn’t going to qualify you for zero percent credit cards.  You need an excellent score – we’re talking 720+ range – anyone who approves you with a score lower than that has something up their sleeve.

If you want to avoid denial, there’s another important factor to consider – whether or not you’re a “card hopper”.  If you bounce from company-to-company with no longevity, it’s going to stick out like a whore in church during the approval (denial) process.  It’s one of the first factors credit companies look for?  If you qualify for a credit card that offers a 0% introductory rate, you’re most likely already in the habit of sticking to a prompt payment schedule.  Regardless of what type of interest free plan you go with, it will be to your benefit that you continue to pay on time.

There’s more than one type of plan?  Correct – there are two types of these credit cards.  Although on occasion, you’ll find one that offers the same rate in both categories (not always as nice as it sounds), they typically fall into either the category of balance transfer or purchasing cards:

0% Balance Transfer

A balance transfer is exactly what it sounds like.  It’s when you transfer the balance on an existing line of credit to a new credit card.  Balance transfer cards are typically employed when one has an over encumbering balance yielding a high interest rate, and desires to pay it off with a more affordable plan.  Considering the average credit card interest rate is around 17%, transferring your balance can often be a good idea.  “A good idea?”, you ask,  “How about a freakin’ great idea!  What kind of idiot would pass up on a 0% balance transfer credit card?”  Well, an idiot who did his homework…c’mon, you knew there would be a catch or two – here they are:

• Remember when I said that zero percent credit cards don’t last forever?  I’m saying it again.  Once that 4 month, 6 month, 12 month…period runs out, that rate is going from 0 to 60.  Well, maybe not 60, but it’s going to skyrocket, and any remaining debt is going to skyrocket as well.  Only sign up for a 0% balance transfer card if you’re sure you can pay it off within the introductory time frame!
• The interest rate may be zero, but there will always be a transfer fee.  These fees usually flirt in the range of 2.5-3.0% of the total balance transfer.  If you’re carrying a balance of $3000, at 3%, you’re going to be paying $90 on top of you’re existing balance.  Just make sure you do the math before you decide.

0% Purchasing Cards

These are plans that allow you to do most of your purchasing without collecting any interest.  These types of zero percent credit cards should only be considered by a debt free customer.  If you’re already carrying a heavy balance on an existing card, this will likely only get you into trouble.  Like its cousin, the balance transfer card, purchasing cards also come equipped with catches:

• This should sound familiar – don’t spend what you aren’t positive you can pay off before the 0% rate expires.  The same consequences apply as previously stated.
• You’ll notice that above, I mentioned “most of your purchasing” can be done without accruing interest.  Read the fine print, people.  If you’re an online gambler, into porno, instant cash advances, or even buying gift vouchers, you may void your zero percent rate by using your card for any of the above.  Before signing up, make sure you know what spending is considered contract-voiding.

That should be sufficient enough for a basic understanding of zero percent credit cards, and how they work.  You’re now aware of some of the benefits, as well the possible consequences of choosing to use a credit card offering a zero percent interest rate.  Explore the site for further information, and please spend wisely!