A zero balance transfer credit card plays an important role in the debt elimination process. It allows the card users to consolidate their multiple debts into one single account and they will be enjoying lower interest rate. With the interest reduction, the card holders who have a big sum of outstanding balances will be able to pay off their debts faster.

How can it be done?

Let me share with you 10 practical steps which you can adopt:

Step 1: List down your debts one by one

Most of the Americans have 3-4 credit cards on hand. Before applying for a new card, you need to find out your total debt. In order to have a clearer view, you are advised to list down the outstanding balances for each card one by one. This is the very first step you should take to move towards debt free.

Step 2: Knowing your debts in detailed

You are reminded to list down the interest rates and late fee charges for each card too. You must make sure you know all the details of your debts before taking further action. Some credit card providers do not allow the cardholders to transfer their balances within certain period.

Step 3: Search for a zero balance credit card

After knowing the total amount of debt, you can then proceed to find a new card which allows you to transfer all your outstanding balances. You need to contact the card providers to find out the credit limit. It is important for you to confirm whether the credit limit offered is enough to cover your total debt. If it is not enough, you need to find out whether it is worthwhile for you to transfer partial of your debt.

Step 4: Find out whether there is any fee associated with the card

Some card providers in the market do charge upfront fee at the time of transfer. Some may waive the fee during introductory period. Hence, you need to find out whether there is any additional cost you need to bear.

Step 5: Read the terms and conditions carefully before transferring your balances

Many zero balance transfer credit cards will charge extremely high late fees if the card users delay their payments. Before taking up the card, you are reminded to get all the terms and conditions clear.

Eliminating debt is a challenging process but you are encouraged to “enjoy” the process. Although it might be very stressful for you to bear heavy financial burden, you are reminded not to be depressed.

Step 6: Work out a realistic budget plan

Have you got a budget plan with you? If no – start working out one based on your monthly income and expenditure. Make sure you have sufficient fund to pay off your monthly payment.

Step 7: Pay more than the monthly minimum payment

If possible, try to cut down some of the unnecessary expenses so that you can raise more cash to pay your debt. If possible, pay more than the monthly minimum payment. By doing so, you will be able to get rid of your debt faster.

Step 8: Start paying off high interest card

If you fail to transfer all your debts, you are advised to transfer the balances from those high interest cards first; then only followed by low interest cards.

Step 9: Consider a second balance transfer

You should plan for a second balance transfer when you have a big sum of debt.

Step 10: Face your debt issues with positive attitude

Your goal is to become debt free. You can achieve it as long as you face it with courage. Eliminating debt is a challenging process but you are encouraged to “enjoy” the process. Although it might be very stressful for you to bear heavy financial burden, you are reminded not to be depressed. Life will turn out to be much better after you have cleared all your outstanding balances.

Applying for a zero balance transfer credit card will not enable you to erase your credit card debt completely overnight. You need to have strong determination and patience to pay off your outstanding balances within certain time frame. Besides, you must also stop creating new credit card debt. Watch out your spending habit and don’t swipe your card anymore as long as you haven’t cleared your previous debt.