Saving Money on Credit Card Debt in 2010

Before the recession, there were all sorts of options for saving money on credit card debt. Today, it’s much harder to negotiate interest rates and find promotional offers, but it’s not impossible. Here’s how you can still save money on credit card debt in 2010…

Balance Transfers: Ever since the credit crunch, these have been extremely hard to find. It used to be that every credit card offered 0% for 12 months. Nowadays, you’re lucky to find 0% for 6 months! Mike, the senior editor at CreditCardForum.com, says “There are still a few cards out there which offer interest free balance transfer for one full year. Discover was the only issuer I know of that always offered 0% for 12 months through even the worst of the credit storm. The Discover More card is their most popular, but they have several other cards on the market, too.”

Interest Rates: Due to the credit card reform which went into effect in 2010, nearly every issuer has raised interest rates to reflect the higher cost of doing business. If you had great credit, it used to be that you could get cards which charged interest at the prime rate. Nowadays, it’s extremely hard to find a card that offers an APR in the single digits. Mike says “Check with your credit unions. Often times they have credit cards with below-average interest rates.”

Cash Back: Another way to soften the cost of credit is to use a card that offers cash back or points on purchases. However it’s important to note that most reward credit cards actually have APRs which are above average, so there not always the best cards to carry a balance on.