Being stuck in debt is a horrible feeling. But even worse, is knowing that it could be years before the debt is cleared. This is because the higher the debt amount, the higher the interest payment per month; in fact, at a certain point the minimum monthly payment required is almost the same amount as the interest payments. So in essence, you get stuck paying only the interest each month without reducing the actual outstanding balance. Luckily, there is a solution that can help you combat this situation.
Some banks offer a product known as the zero percent balance transfer credit card. The issuer will allow the credit card holder to transfer a balance from a different interest accruing card to their card which offers a zero percent interest rate for a pre-defined promotional period. The usual promotional period can be anywhere between 3-18 months long.
This will help you reduce your debt much faster as the payments being made are not off-set by the interest being charged. In other words, each payment is going 100% towards paying off the actual debt, rather than the interest due. It is important however to focus on paying off the debt before the period runs out and also making sure that the previous card is no longer used for transactions as this will defeat the purpose.
The best option would be to apply for a credit card that has a long zero percent promotion. The longer the period, the easier it will be to pay off the balance. Some credit card companies will charge a transfer fee of 1-3% of the balance, but do not get discouraged by this one-time amount as it is minimal compared to the interest amount being charged.