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Using Introductory Credit Offers

If you're typical, your mailbox is full of offers from credit card companies allowing you to transfer balances from your other cards at a very low interest rate for a period of usually six to twelve months. This can be a powerful tool to help you reduce your credit card debt in a dramatic fashion.

Normal credit card terms require a high interest rate payment making payoff a slow process -- if it happens at all! With a lower interest rate, most of your payment goes to principal, leaving a lower balance in a short period of time. After switching to the new card, make certain to pay at least 3% of your outstanding balance. In this manner, you will be reducing your balance quickly.

A word of caution -- the introductory period will end without any notice from the credit card company, except for a higher interest calculation on your bill. Mark your calendar and know when this date approaches. If you can, pay off the card by that date. If you can't pay it off, look for alternatives to restructure the debt again. Most importantly, don't use the credit card -- you won't get the same low rate on new purchases.