Pay off debt with 0 interest balance transfer credit cards, but read the fine print

By Lisa Tortorello

If you are like most people, you probably cringe when it is time to pay the bills. It is a chore almost as dreaded as spending a Saturday afternoon at the post office and dry cleaners. Perhaps the most frustrating and stressful bills to open are those from credit card companies.

If you carry a balance like most of us do, every month you may be battling the disappointment of a cemented balance. This means that you are actively trying to reduce your credit card debt by sending more than the minimum payment each month, and have vowed to no longer use your cards unless absolutely necessary, but your balance does not budge - it seems to be stuck in the cement. In fact, it may even increase due to steep interest rates that outrank the amount you are paying every month.

Several years ago, the credit card bills stuffed in your mailbox were probably accompanied by an equal number of offers to transfer your higher-interest balances to zero interest credit cards with no balance transfer fees. This could have certainly helped you chisel your balances out of their concrete cells.

While those zero percent balance transfers are no longer weighing down your mail carrier's bag like in years past, there are still a few out there that can help you pay down your balances more quickly.

Zero interest credit cards - not zero risk

While

By Tom Tennant

The other day, someone asked me, if given the option, which I preferred: charge cards or credit cards. My answer: "There's a difference?"

There is. And who knew? (If you knew, kudos, because I always thought "charge card" was what our ancient ancestors - Mom and Dad - called the plastic we carry around in our wallet.)

In short, charge cards offer no revolving credit and no interest rate. Sure, you can borrow up to your limit, but only for about 30 days. After that, the balance is due in full (that's why there's no interest rate). Can't pay? You'll likely incur a fee - it could be hefty - and your account could be suspended.

Credit cards, on the other hand, give you the option of making a monthly minimum payment. If you don't pay your balance in full each month, the balance rolls over (or revolves) into the next month. This "convenience" comes with a catch. Interest is levied on the balance, making your purchase cost more than its original price. This can be painful if all you do is pay the minimum.

Which is better?

The answer depends on your financial goals and the type of spender you are. If you're a student trying to establish credit for the first time, for example, or you are rebuilding credit, then opt for a charge card. Here are three reasons

By Ann Cameron

Today, it's often difficult for anyone to get a credit card - whether it's a zero percent balance transfer card or a best cash back credit card. And if you're just starting out -or starting over - getting an approval based on your credit score can be even more of a hassle. This is what makes pre-paid cards so attractive if you want to use them for online shopping, travel or even just everyday expenses.

As more and more of us are embracing the "card-only" lifestyle, a pre-paid card can be a great alternative to using a debit card or zero interest credit card.

If you need any more reassurance, take a friend's recent example. She attended an industry conference for a few days and needed to secure her room with a card - standard operating procedure for any hotel. She'd used her debit card to cover incidentals that she incurred, such as meals, Internet connection and minibar snacks. No problem.

But later that night at dinner, her debit card was rejected for being over her bank account limit. Apparently, the hotel was holding $150 on her debit card for those "incidentals" for each of the three nights she planned to spend there. Although the $450 was credited at the end of her

By Sierra Black

You've probably heard good things about credit unions. Or maybe you've just heard of credit unions for the first time, and are wondering what all the fuss is about.

Putting credit unions in context

Credit unions are not-for-profit organizations that provide most of the same services a bank provides. You can get a checking account through a credit union, as well as savings accounts, CDs and even mortgages. They're member-owned, so there are no shareholders to report to and no profit motive behind the banks' practices.

Think about the difference between public library fines and video store late fees, and you'll have a sense of what this means to you as a consumer.

I had my first credit union account when I was a teenager, at the credit union where my mom does all her banking. At the time I wasn't a picky bank customer, and it served all my needs just fine. I changed banks when I went away to college, and ended up in the clutches of a major national bank for several years.

Since then, I've bounced from credit unions to commercial banks and back again a few times. Right now, my accounts are split between a checking account at local brick & mortar bank and a high yield savings account at an online bank. Doing the research for this article, though, has pretty well persuaded me to switch back to a credit union.

Credit unions pros

By Kelly Richardson

Please don't get me wrong. I do actually enjoy going to my neighborhood bank on occasion. The tellers are friendly; the atmosphere comfortable; the coffee fresh and caffeinated. But, admittedly, I try to avoid the trip whenever I can.

I use the virtual banking services whenever possible to avoid navigating traffic and standing in line at my local branch. So you can imagine my excitement when I discovered that the best online banks are now moving in the direction of remote check deposits.

If you haven't heard, this phenomenon allows you to make check deposits across the internet using a connected deposit device or even just your own mobile phone. You heard me right--there are wikis and widgets that allow you to make deposits directly into your high interest savings accounts from the comfort of your own home.

How does remote check deposit work? There's an app for that!

Making a remote deposit is surprisingly easy--even those with technophobia will find it an intuitive process. Simply log into your checking account online and use a bank-provided scanner to "read" the check.

The bank's program captures the dollar amount of the check through a complex hand-writing analysis program that compares the number to the amount that's spelled out. Once the transaction is complete, simply verify the amount and the transaction is placed on the deposit schedule. Simple, right? But wait--it gets better.

If you don't want to

By Jim Sloan

I never really paid much attention to the rewards programs offered by different credit card companies. I was raised to use credit cards only for emergencies and not for everyday use, so my sole criteria for getting a card was that the interest rate be as low as possible.

But then a friend of mine told me he was planning a trip to China, and was going to pay for his plane ticket through the rewards he was earning on his credit card.

"I'm paying for everything with my card," he said. "All my monthly bills - the rent, the groceries, the phone bill, everything. Then at the end of the month, I just write a check to the credit card company instead of eight or 10 checks to all these other places."

And it worked. After several months, my friend and his wife were able to get the tickets for next to nothing--all thanks to the judicious use of their credit card.

The fine print of rewards cards

Even if you're not planning a trip to China, this approach can work for anyone, provided you keep a few things in mind as you decide which rewards credit card programs works best for you:

• Rewards cards usually carry higher interest rates than non-rewards cards. That means if you're not paying off the balance every month, your interest payments will quickly exceed your rewards.
• Look for rewards that you'll use. The points you earn