There are many credit cards available on the market. Many cards not only charge zero interest rates for an introductory period. They also don’t charge an annual rate. If you have a lot of credit cards and debts, you might want to play the ‘credit cards shuffle’. You use low-interest or no-interest cards to pay off higher interest cards’ balance. Then you move your balance before interest rates kick in.
Here is how it works: you take all your current debts and pay them off. You do this with a balance forward payment from a card that has no interest and no annual fee. You simply write a ‘credit card check’ issued by your credit card to pay off the balance on these other cards. Once you have paid them off, cancel those cards and cut them.
The tricky part of the ‘credit cards shuffle’
Now all your debt has been consolidated in one zero-interest or low-interest card. Therefore your next step is to pump as much payments to your card as you can. You have to try really hard to eliminate the balance as soon as possible.
Wait a couple of months. Then start looking around for another card that charges zero interest rates and doesn’t have an annual fee. Once you have secured the card, wait until the final zero interest month on your current credit card. On the final month, pay off the balance with your other zero-interest card.
Keep repeating this process until you have eliminated all your credit card debt. Sure, this is quite tedious. However, you have to really pay attention to when your credit cards’ zero-interest periods expiry. But it is all worth it particularly if you have five digits or more debt. This leg work is minor compared to the pain of crushing debt which and the compounding interest.
Use the credit card shuffle to learn new financial skills
While you are doing the credit card shuffle, use this period as an opportunity to learn new financial skills like not using plastic, buying only stuff you need, and never buying more than what your income allows. Learn to live within your means and the period of time you spend doing the credit card shuffle will produce a new fiscally responsible future for you and your family.