Have a plan for when the 0% introductory rate expires: Did you ever wonder why credit card companies are willing to offer 0% interest for sometimes as long as a year?
The reason is that they know many people will leave the balance on the credit card after the introductory rate expires. Therefore, it is critical that you know what you’ll do with the remaining balance when introductory rate expires. For us, it usually means transferring the balance back to our home equity line of credit that charges a very reasonable and tax-deductible rate. If you plan to leave the balance on the card, check out commandment number 4. • Always know the interest rate you’ll be charged once the 0% introductory rate expires: If you plan to leave the remaining balance on the card after the introductory rate expires, you should know what the adjusted rate will be before transferring the balance in the first place. We currently have 0% introductory rate credit cards that will charge about 7.5% when the introductory rate expires. While we don’t plan to leave the balance on the cards at that time, 7.5% interest would not be the end of the world. • Don’t use 0% offers to overs
