As a young child, I spent a lot of time with my grandparents. Some of my fondest memories are of my grandmother telling me stories. One of the ever-present favorites was the fable “The Tortoise and the Hare.” How often I heard the axiom, “Slow and steady wins the race.”
As an adult, I’m amazed at how many times that axiom has popped into my mind and been a sort of guide in my decision-making, including decisions about credit cards.
The glut of credit card options can be overwhelming for anyone to wade through in a quest to make a wise decision about which card to apply for. Many reward offers are attractive. Equally appealing are the tempting zero-percent cards. However, for anyone with a fair amount of debt to pay down, a low interest card is a wise choice.
Let’s face it. Life has a way of landing us in unexpected circumstances. Whether a temporary job loss or a medical emergency or the break down of a large appliance or a vehicle, any one of us could find himself in a unexpected circumstance where a major amount of debt is incurred. Once we get back on our feet by finding another job or recovering our health, how do we address the new debt we suddenly find ourselves saddled with?
Why not a zero-percent card? A zero-percent card is a great option if you know you can pay off the balance by the end of the introductory zero-percent offer. Read the fine print before you select a zero percent card and be sure you understand what your interest rate will become at the end of the introductory period. Some zero percent offers have a steep interest rate after the initial offer. For instance, I needed to replace car tires the other day. I could save $90 if I opened a credit card account at the tire dealership. The card’s zero interest jumps up to a whopping 26.99% after the initial six months is over. An interest rate like that could add a lot to a debt load if one cannot pay off the card balance at the end of the initial zero-percent offer.
I believe my grandmother’s axiom comes into play. Wisdom would dictate looking for a low interest rate credit card that would allow me to intentionally pay down my debt at a steady pace each month without a punishing amount of interest charged on the balance.
In taking this steady approach to debt reduction, look for a card with a low interest rate. At the same time, check to see that the card has no annual fees. On top of no annual fee and a low interest rate on both new purchases and existing balance, if you can find a card that offers a lower initial interest rate for balance transfers, I’d consider applying for that card.
A low interest credit card I’d personally highly recommend is IberiaBank Visa® Classic Card. This particular card offers relatively low interest rates, a great six month introductory 1.99% rate on all balance transfers, and no annual fees. IberiaBank Visa® Classic Card just received top ratings in the Consumer Reports Top Low-Interest / Fees Cards of 2010.
If life has handed you unexpected debt or you’ve just decided to make an effort to become debt free, this low interest rate card would be a great one to transfer balances to. With normally low rates, a great introductory offer, and no annual fees, it definitely allows the consumer some breathing room while he makes progress in paying off debt in steady, monthly increments.
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