Plastic money is now replacing hard cash all over the world.
Debit cards and credit cards have revolutionized shopping, paying of bills and just about all forms of expenditure.
Debit cards are like cheques but work faster.
They deduct the money directly from your account as you spend.
On the other hand the credit ones are like loans.
The bank forwards you the money to make your purchases and you can repay them at the end of the month in lump sum or in easy installments.
Credit cards are fast becoming extremely popular as they do not require you to actually have the money at the exact time of your purchase.
But they have their own problems.
Missing a payment can result in very high rates of interest being levied on your principle amount.
This interest can become really high and easily surpass the principle amount in matter of a few months.
But if you take care to make your payments regularly, they can be a boon.
These card companies have launched a new form of cards called the 0 balance transfer credit card.
This card is really gaining momentum day by day because they are very helpful in the process of debt repayment as you so not need to pay any interest on it.
But it is essential to read the fine print when you opt for cards of any type, especially 0 balance transfer types.
What the card companies have done is that they have introduced these 0 balance cards as an introductory offer to promote their products.
The company decides on a certain period during which the benefits of the 0 balance transfer is applicable.
This can range from 3 to 15 months depending on the company policies.
After this time is up, they company will start charging for everything.
So it is important to be aware of the consequences after the offer period is complete.
Since these cards are there primarily to make debt payments you must be very careful not to charge your shopping and other purchases to the 0 balance card.
This is because the company charges large percentages of interest on certain products.
Also when changing from a certain scheme to a 0 balance scheme there is a fee applied.
This is primarily done to ensure customers don't change their schemes too often.
Though 0 balance cards can go a long way to help repay debts it's always advisable to use these cards as a crutch and not as an appendage.
The best way save money and be free from debt is to figure out your expenses and make your payments regularly.
This way you can enjoy the benefits of credit cards of all types and be saved from their treacherous fine print.