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0% Spending Credit Cards

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0% spending credit cards might not be that well heard of and credit cards in general can be a bit of a sore subject; most of us have or will have had one at some point, we are constantly being told to avoid them wherever possible while at the same time, being bombarded with adverts or post offering us tempting deals. Now we have the new breed of 0% interest rate credit cards that can really put the cat among the pigeons when it comes to the theory that all credit cards are bad! Can we actually save money using a credit card or is it just another clever marketing tool used by lenders to part us from our hard earned cash?

 

Is All Debt Bad?

Not all debt is bad, but debt that is costing you money is bad. Confused? Well put it this way, if you could shift debt from a high interest credit card onto a 0% interest card, you are in effect paying off a loan for free. Or if you purchase your holiday on a 0% spending card, you get all the protection that comes with using a credit card, you can take a little longer to pay the card off and you still won’t be paying any interest. In these instances, your debt is actually working in your favour.

0% spending cards can be used to save money if you’re disciplined with their use and have a good credit rating in the first instance in order to get one. They aren’t the same as 0% balance transfer deals but instead allow you to make purchases and pay no interest during the set period. If you need to purchase a large item where you may have taken out a loan or bought on finance, using a 0% spending card it the equivalent of a free loan. Like with any form of credit, a check will be done by the lender to determine whether they’ll offer you the card. 0% spending cards are only reserved for those will good credit history so be aware that every credit check against your name will impact on your rating.

0% spending credit cards

Avoid the Interest Rates

If you have a 0% spending card, you still need to ensure the balance will be paid off before the 0% period ends. At that point the interest will shoot up and cost you considerably. If you haven’t paid the balance off, then make sure you know at what point the 0% interest term ends, make a note in your diary and consider moving the balance to a 0% balance transfer card to continue reaping the benefits. You should also ensure you pay at least the minimum repayment each month. Not only will you be hit with charges and tarnish your credit rating, but the lender may withdraw the 0% interest offer.

The Best Deals

0% spending deals tend to last for a year, so if you can pay off the balance in that time, go for that card. If you’re worried you may not be able to pay it off or transfer the balance, go for a low interest card instead that will have a longer term. The Halifax is offering a 0% spending card for a whopping 17 months but that’s reserved for those with the best credit rating. That is closely followed by Tesco and Marks & Spencer’s offering a 16 month 0% term that can also be used in conjunction with some of their own offers such as reward points or cash back.

Whatever you opt for, keep up the repayments and an eye on the 0% end date; you don’t want charges or interest wiping out any savings you’ve made!

 

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About Rebecca Robinson

About Rebecca Robinson

After spending the last 8 years juggling life as a mum of two, wife and working full time as a Project Manager for a global telecommunications company, Rebecca Robinson made the decision to follow her love of writing and took the plunge; turning her passion into a full time career. Since becoming a full time writer, Rebecca has worked with various media and copy-writing companies and with the ability to make any topic relevant and interesting to the reader, now contributes to The Working Parent on articles ranging from credit cards to teenage relationships. Ever the optimist, Rebecca's dreams for the future include a house in the country filled with children, dogs and horses in the field!

Website: Rebecca Robinson

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