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A 0 apr credit card is one where there is no interest at all charged for an initial period. Such offers are common these days and many of them charge zero interest for a year. These can be very valuable if used wisely. This article will tell you how!

There are two main ways in which these no interest offers can be used to great advantage if the offer applies to balance transfers. The first way can save you money on existing debt and make a huge difference to your financial situation. The second way can make you a significant profit very easily from only a few minutes work.

The first approach is the more common, and can be a great advantage to anyone with existing debt. The method is simple and straight-forward. What you do is you transfer existing debt onto the new card for the initial zero interest period. This means that you don't have to pay any interest on it at all for that period and your monthly repayments can pay down the debt principle itself.

For many people, the required monthly repayment barely pays off a little more than the interest owed, and it is easy to use the little money that is available after that and for month after month be mainly paying towards the interest each month and still owe the same amount. This can go on for long periods and be a real financial problem for some people.

By transferring the existing borrowing onto the new account, you can avoid any interest payments at all and the monthly repayments are all applied to the amount owed rather than to interest. For many people, the whole debt can be paid off in the initial 0% period just by paying the same monthly repayments they were paying on the debt beforehand.

The second method is less well-known and is of more use to those who don't have existing debt. How it works is again very simple and straight-forward. What you do is you use the funds available on the new card to pay into an interest-bearing savings account. Then just before the end of the 0% interest period you pay off the new card and keep the interest as pure profit!

A 0 apr credit card can be of great benefic to your finances if you use it as described in this article.

0 apr credit card