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What You Should Know About Time-Barred Debt

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If you owe funds that are overdue, you may be concerned that a debt collector will sue you to reclaim the money. However, depending on how old the debt is, this may not occur.

Every debt collector has a certain number of years (a statute of limitations) that they can pursue you in a court of law to legally obligate you to pay back the money. However, each state has its own laws on how long this statute of limitations period is. After that period passes, though, your unpaid debt is considered “time-barred,” and debt collectors can’t sue you over it.

Here’s a deep dive into time-barred debt and the rules surrounding it.

4 things to know about time-barred debt

1. The rules for time-barred debt vary by state

The rules for time-barred debt depend on two things:

  • What type of debt you’re dealing with
  • Which state the debt is being collected in

Each state has different laws regarding the statute of limitations for outstanding debts. Typically, it ranges from three to 10 years. Different debts have different statutes of limitations. You can review your state’s statutes of limitation on debt here.

Keep in mind that if your debt collector continues to contact you about debts that are owed past their statute of limitations, they’re within their rights. A collector can contact you to collect the debt as long as they have it on their books.

2. You can’t be sued for time-barred debt — but debt collectors may try

A collector can’t sue you for time-barred debt. A collector, as defined by the Fair Debt Collection Practices Act, is anyone who is attempting to collect on your debt. This might be your original lender or creditor, debt collection agency or an attorney assigned to collect your debt.

Debt collectors are legally obligated to tell you whether the debt is beyond the statute of limitations and whether they can sue you. If they don’t say this explicitly, they have to confirm that your debt is within the statute of limitations if you request verification and formally dispute the debt.

Formally disputing your debt can be challenging. To do so, you’ll need to write a letter requesting verification that the debt is still within its statute of limitations. Your debt collector can’t continue to try to collect on your debt, or attempt to take you to court over it, until they resolve the verification you’ve requested. You can request for your debt collector to verify:

  1. When your last payment was made on the debt. Technically, your debt starts “counting down” toward being outside of statute of limitations after you make your last payment.
  2. Whether the debt is within statute of limitations. Debt collectors legally can’t lie to you about whether or not your debt is within statute of limitations. However, they can decline to respond.

If your debt is outside the statute of limitations but a collector decides to pursue legal action anyway to collect your time-barred debt, you can legally defend yourself in the court of law. If this is your situation, seek legal help as soon as possible to contest the lawsuit.

A consumer advocacy attorney can help you navigate the lawsuit and confirm that your debt is outside of the statute of limitations. Although you can always choose to go to court without an attorney, it’s not advisable. If you choose to not show up in court, the court will likely rule in your creditor’s favor by default.

3. You can be tricked into repayment

Dealing with old debts can be emotionally exhausting, and knowing that they’re outside of the statute of limitations can be a welcome relief. But you’re not out of the woods yet. Your creditor’s sole job is to collect payment from you, and they can do so in a few different ways – even if you believe that your debt is time-barred.

  1. Resurrecting your debt. If your creditors pressure you into making another payment on your time-barred debt, you’ll automatically resurrect your debt and send it back into repayment-mode (and out of its previously time-barred status). At this point, your creditors can take you to court.
  2. Agreeing to a repayment plan. In some cases, even an oral indication that you’re willing to agree to a repayment plan or reach a settlement will “restart” your time-barred debt.

4. Failing to repay time-barred debt hurts your credit

Just because your debt is time-barred doesn’t mean that you shouldn’t pay it back. After all, you did take out the debt and, presumably, you didn’t repay it in a timely fashion.

Debt collectors can continue trying to collect the debt you owe for the rest of your life. The only difference with time-barred debt is that a collector can’t sue you for the money. If you choose not to repay your time-barred debt, you won’t encounter any legal ramifications.

However, failing to repay your debt could come with other consequences. For example, you might find it harder to get new lines of credit, or your insurance premiums might be higher, because the unpaid debt is hurting your credit score.

4 ways to handle time-barred debt

If your debt is time-barred, you can choose to handle it in several different ways. How you choose to do so could potentially have an impact on your credit score, so it’s important to weigh the pros and cons of each option carefully.

1. Pay it off

First, you can consider paying off your time-barred debt. With debt collectors contacting you frequently, paying off a time-barred debt might feel like a pressing task to check off of your to-do list. However, if you have to prioritize debts to pay off, you should focus on newer debts first.

Once an existing debt goes to collections (as most time-barred debts have), paying it off won’t dramatically improve your credit score. Instead, focus on paying down current debts first, then refocus your attention to outstanding time-barred debt.

2. Ignore your debt collectors

Another option you can pursue is to ignore your debt collectors. This is a tempting course of action, especially if you don’t plan to pay back the time-barred debt. However, this may not be your best option. Creditors won’t stop contacting you, so ignoring them won’t make the debt (or the collectors) go away.

Additionally, if you ignore the creditors, you’ll be unable to dispute the debt or request that they verify whether or not it’s within the statute of limitations. They could potentially take you to court over the debt, which could be avoided through communication with them.

3. Request that debt collectors stop contacting you

If you’ve confirmed that your debt is outside of the statute of limitations, you can write a formal cease and desist letter to your creditor. You can use these templates from the Consumer Financial Protection Bureau to help you put together your letter. Once your creditors receive this letter, they should stop contacting you.

4. Declare bankruptcy

Bankruptcy is a legal proceeding in which the court determines whether you should be discharged of your debts. With a Chapter 7 bankruptcy filing, this essentially gives you a chance to start over.

If you feel that it will take you five years or more to pay off your debts, filing for bankruptcy might be something you consider, but declaring bankruptcy isn’t easy. Contrary to popular belief, bankruptcy isn’t free – you have to pay for an attorney and the filing fees associated with declaring bankruptcy.

If you’re considering filing for bankruptcy, you should consider speaking with a lawyer who specializes in such cases to ensure you go through the filing process correctly.

Remember that filing a Chapter 7 bankruptcy will help you restart with a clean slate – but it doesn’t automatically rebuild your credit. In fact, a bankruptcy stays on your credit report for seven to 10 years. Finally, bankruptcy isn’t a cure-all solution as not all debt can be erased by declaring bankruptcy.

The following debts can’t be discharged through bankruptcy:

  • Alimony
  • Federal student loans
  • Child support
  • Taxes
  • Debts incurred as a result of a personal injury while drinking and driving

Avoiding future debts

Although having a time-barred debt can be a positive thing as you won’t necessarily be sued for not paying it back, it doesn’t necessarily reflect well on your finances. The debt will continue to bring down your credit score, and you may have problems getting additional lines of credit in the future as a result.

Seek guidance in the form of credit counseling services. You can reach out to the National Foundation for Credit Counseling or the Financial Counseling Association of America for help managing your debt – time-barred or otherwise.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Debt Settlement: How It Works, FAQs And More

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Household debt statistics ebb and flow over the years, but debt never completely goes away. As of January 2020, 41.2% of U.S. households have credit card debt. The average among American households carrying a balance is $9,333.

But whether you’re buried under credit card, medical or another type of debt, one option you might be considering is debt settlement. This form of debt relief can help you erase your unpaid balances – but it isn’t guaranteed and can mean costly consequences for both your credit and wallet.

What is debt settlement?

Debt settlement is the process of hiring a company to negotiate with your creditors to reduce or erase your balances. You may also do it yourself. (More on that below.)

When you hire a debt settlement company, you’ll be asked to deposit a certain amount of money in a savings or escrow account each month. (The account will belong to you.) As you build your savings, the debt settlement company will generally advise you to stay delinquent with your creditors. That means you’ll continue to accrue fees, such as for late payment on your debts – hurting your credit in the meantime.

Once your savings account accumulates a high enough balance, the debt settlement company will begin negotiating with your creditors to settle the debt. If your creditors agree to settle, the payoff amount will be taken out of the savings account.

Fees

Fees for debt settlement programs can be difficult to find on company websites. However, most consumers can expect fees to range from 15% to 25% of the total debt they enroll in the program. Fees are charged against successfully settled debts, but may also include fees for any third-party managed savings account that is part of the program.

Pros and cons of debt settlement

Is debt settlement a good idea

Pros

Cons

  • Can reduce your total balances due
  • Simplifies monthly bill payment
  • May help you avoid bankruptcy
  • Could take less time to finalize than Chapter 13
  • Fees can be costly
  • You generally need to be behind on payments and remain delinquent, accumulating late fees
  • Remaining behind on payments will negatively impact your credit
  • No guarantee that your creditors will accept the settlement offer
  • Canceled debt may be treated as taxable income

Working with a debt settlement company

  • Evaluate debt settlement companies. This starts by comparing the fees and claims of each company. Debt settlement can be risky as it isn’t guaranteed, so it’s critical to compare fees. Additionally, since there is no guarantee that a creditor will accept the settlement, it’s a good idea to review each company’s claims to ensure you’re dealing with one that sets reasonable expectations.Next, evaluate the company’s process as well as their terms to make sure you qualify. For any company you work with, you should retain control over the funds. Some companies begin making settlement agreements as soon as the funds build up, others wait.
  • Research debt settlement companies. After you’ve narrowed down your choices, check on the company’s compliance and other user experiences. You can visit the Better Business Bureau and ensure the companies are members of the American Fair Credit Council and the International Association of Professional Debt Arbitrators.
  • Establish agreement/account. Upon selecting a company to work with, visit their website to open an account. Be prepared to give your name, phone number, email address and the total amount of credit card debt.
  • Start saving money according to your plan. Once the company reviews your debt, they will propose a savings plan that you should follow. This will require you to make a single deposit into an account usually managed by a third party.
  • Saved funds are disbursed. When the company begins making settlement agreements, the funds will be distributed from the account, paying off both debts and settlement company fees.

How to settle debt on your own

1. Figure out which accounts are past due

If you’ve secured money through a loan, savings or inheritance and you want to leverage that to settle your debt, you don’t have to hire a debt settlement company. Instead, you can take care of it yourself or hire a lawyer to handle the negotiations.

For a debt settlement offer to be appealing to creditors, you likely need to be behind on payments. Rather than stopping payments on your current debt, make a list of the debts you are already behind on.

Next check the statute of limitations on that past-due debt. If you have debt that’s past the statute of limitations, then you can no longer be sued by the creditor to collect. If you decide to make a partial payment on debts that are past the statute of limitations, it might restart the clock on the statute.

2. Save money, and determine how much you can pay

Before contacting your creditors to make a settlement offer, determine what kind of lump sum or payment plan agreement you can stick to. The goal is not only to pay off the settled debts but to stay current with all your other bills and ensure you have enough of a cushion to deal with potential emergencies.

If you don’t have a lump sum of money to offer for debt settlement

3. Contact your creditors

Creditors need to agree to reduce your debt balance as part of your settlement offer. To find out which creditors are amenable to debt reduction, contact all those whose payments you’ve fallen behind on. Because you want everything documented, this contact should be made in writing, although you can call the company as well.

In some cases, this debt may have already been transferred to a collection agency. If that’s the case, verify which collection agency has taken the debt and contact them.

4. Write a debt settlement letter

Once you know which creditors are willing to settle, write a debt settlement letter spelling out the details of the agreement. This letter should include:

  • The account number
  • The reason you want to settle the debt
  • The current balance
  • The proposed settlement amount or restructured payment plan
  • The deadline for the settlement payment or starting date for the payment plan

Sample debt settlement letters

Alternatives to debt settlement

Debt management plans

Nonprofit credit counseling organizations often offer what’s called a debt management plan. This is a strategy in which the credit counseling agency works with creditors to reduce your interest rates and create payment plans that work with your budget. You then make a single monthly payment to the agency and have a payoff date within three to five years.

A debt management plan may come with a monthly fee as well as a setup fee. However, these fees may be worthwhile, as the credit counseling agency will work to have late fees and other kinds of fees waived on your debt.

Debt consolidation

If you don’t like the idea of keeping your debts unpaid for debt settlement, you can instead consider debt consolidation. You can accomplish this by either:

  • Working with a nonprofit credit counselor to create a debt management plan; or
  • Getting a personal loan, balance transfer card or equity loan to pay off all creditors, thus reducing your repayments to a single lender and due date.

Bankruptcy

Debt settlement is often chosen as a way to avoid bankruptcy, but in some situations, bankruptcy could be a better option.

  • With Chapter 13 bankruptcy, a three- to five-year payment plan can mean that your debts are settled and your secured assets protected with a court-approved payment plan and possibly lower debt balances.
  • With Chapter 7 bankruptcy, many unsecured debts can be discharged without payment, so you might save even more money. Since credit cards are unsecured debt, Chapter 7 can be a better choice than credit card debt settlement.

With either type of bankruptcy, collection actions are stopped, along with garnishments. This can provide a welcome relief to those being hounded by debt collectors.

FAQ: Debt settlement

A debt that’s been settled will show as such for up to seven years on your credit report. In addition, late payments of 30 days or more can remain on your credit report for up to seven years.

Because debt settlement generally requires you to remain past due on payments, it can have a detrimental effect on credit. Missing more than one payment, which is typical for debt settlement, can have an even greater impact.

Taking a settlement in and of itself is not necessarily a bad thing, although it will show up on your credit report. There can be tax consequences on the forgiven debt, so make sure you’re ready to pay those. Settlements also generally require you to be past due on payments, which also has a negative effect on your credit score.

Debt settlement companies often claim reductions of 30% to 70%. This does not include fees paid to the settlement company.

To qualify for debt settlement, a creditor generally must be enduring a financial hardship that has put them behind on payments. They must also meet the company’s debt balance requirements.

Debt settlement companies often claim to have an advantage with creditors by handling a large volume of customer debt through bulk negotiations. This could mean you have better odds of having your agreement accepted when you use one. However, you may save money by handling it on your own.

Avoid companies that charge in advance or that guarantee results. Check the Better Business Bureau for complaints and make sure the company is compliant with the Federal Trade Commission.

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Balance Transfer, Best of, Pay Down My Debt

Best 0% APR Credit Card Offers – February 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

There are a lot of 0% APR credit card deals in your mailbox and online, but most of them slap you with a 3 to 4% fee just to make a transfer, and that can seriously eat into your savings.

At MagnifyMoney we like to find deals no one else is showing, and we’ve searched hundreds of balance transfer credit card offers to find the banks and credit unions that ANYONE CAN JOIN which offer great 0% interest credit card deals AND no balance transfer fees. We’ve hand-picked them here.

If one 0% APR credit card doesn’t give you a big enough credit line you can try another bank or credit union for the rest of your debt. With several no fee options it’s not hard to avoid transfer fees even if you have a large balance to deal with.

1. The Amex EveryDay® Credit Card from American Express – Introductory 0% for 15 Months on balance transfers and purchases, $0 balance transfer fee.

This offer edges out competitors with a long 0% intro period and standout perks. The Amex EveryDay® Credit Card from American Express has increased value with an intro 0% for 15 Months on purchases and balance transfers, then 14.49% - 25.49% (Variable) APR and a $0 balance transfer fee. (For transfers requested within 60 days of account opening.) In addition to the great balance transfer offer, you can earn rewards — 2x points at US supermarkets, on up to $6,000 per year in purchases (then 1x), 1x points on other purchases.

Find out in seconds if you pre-qualify for the American Express EveryDay Card or other Amex offers
Get matched instantly with offers through our partner, American Express. Don't Worry, there will be no impact to your credit score.
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2. BankAmericard® credit card0% Introductory APR on purchases for 15 billing cycles, $0 Introductory Balance Transfer Fee

Cardholders can benefit from an 0% Introductory APR on purchases for 15 billing cycles and an introductory $0 balance transfer fee for the first 60 days your account is open. After that, the fee for future balance transfers is $0 Introductory Fee for transactions made within 60 days of opening your account. After that, your fee will be:Either $10 or 3% of the amount of each transaction, whichever is greater. Once the intro period ends, there is a 14.49% - 24.49% Variable APR. You can benefit from a $0 annual fee and access to your free FICO® Score.

When to consider a fee

While no-fee balance transfer cards are great, sometimes it may be worthwhile to consider a balance transfer card with a balance transfer fee. The fee will be a percentage — typically 3% or 5% — of the total amount you transfer, but cards that charge balance transfer fees often have longer intro periods. If you can’t afford the high monthly payments required to pay off your balance before the end of a 15-month intro period, a card offering a longer intro period — such as 18 months — can provide lower monthly payments while still allowing you to pay off your balance before the end of the intro period. Below, we provide an example that should help you decide when you should consider a fee.

For this example, we’re assuming $6,354 in credit card debt, which is the average balance Americans have, according to Experian’s 2017 State of Credit report.

By choosing the card offering an intro 0% for 18 months and a 3% transfer fee, you’ll only have to pay $364 a month to pay your debt and the balance transfer fee off in full during the intro period. That’s $60 less than the $424 monthly payment required by the card with an intro 0% for 15 months. Just beware that while you’re saving month to month, overall, you will end up paying about $190 more due to the balance transfer fee.

If you need a longer intro period and lower monthly payment, we recommend the Discover it® Balance Transfer or the Wells Fargo Platinum card. The Discover it® Balance Transfer offers an intro 0% for 18 months on balance transfers (after, 13.49% - 24.49% Variable APR) and has a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

The Wells Fargo Platinum card has an intro 0% for 18 months on qualifying balance transfers and has a 3% for 120 days, then 5% balance transfer fee. After the intro period, it has a 16.99%-26.49% (Variable) APR.

Discover it® Balance Transfer

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Rates & Fees

Discover it® Balance Transfer

Intro BT APR
0% for 18 months
Regular APR
13.49% - 24.49% Variable
Balance Transfer Fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Credit required
good-credit
Excellent/Good

Wells Fargo Platinum card

The information related to Wells Fargo Platinum card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Wells Fargo Platinum card

Intro Purchase APR
0% for 18 months
Intro BT APR
0% for 18 months on qualifying balance transfers
Regular Purchase APR
16.99%-26.49% (Variable)
Annual fee
$0
Credit required
good-credit
Excellent/Good

3. Chase Slate® – 0% Intro APR on Balance Transfers for 15 months and 0% Intro APR on Purchases for 15 months, $0 Introductory Balance Transfer Fee

This deal is easy to find – Chase is one of the biggest banks and makes this credit card deal well known. Save with a 0% intro apr on balance transfers for 15 months and intro $0 on transfers made within 60 days of account opening. after that: either $5 or 5%, whichever is greater. You also get a 0% Intro APR on Purchases for 15 months on purchases and balance transfers, and $0 annual fee. After the intro period, the APR is currently 16.74% - 25.49% Variable. Plus, see monthly updates to your free FICO® Score and the reasons behind your score for free.’

4. Platinum Card from Navy Federal Credit Union – 1.99% introductory APR for 12 months on balance transfers, NO FEE

Platinum Card from Navy Federal Credit Union
The Platinum Card from Navy Federal Credit Union offers a 1.99% introductory APR for 12 months on balance transfers (after a 7.49% and 18.00% Variable APR). Note: This offer expires on Jan. 2, 2020. Since Navy Federal is a credit union, membership is required to open this card. You can qualify if you or one of your family or household members has ties to the armed forces, DoD or National Guard. Find out more about membership qualifications on Navy Federal.

5. Edward Jones World MasterCard® – Intro 0% for 12 billing cycles on balance transfers, NO FEE

Edward Jones World MasterCard®
You’ll need to go to an Edward Jones branch to open up an account first if you want this deal. Edward Jones is an investment advisory company, so they’ll want to have a conversation about your retirement needs. But you don’t need to have money in stocks to be a customer of Edward Jones and try to get this card. Just beware that you only have 60 days to complete your transfer to lock in the intro 0% for 12 billing cycles, and after the intro period a 14.99% Variable APR applies.

6. Choice Rewards World MasterCard® from First Tech FCU – Intro 0% for 12 months on balance transfers, NO FEE

Choice Rewards World MasterCard® from First Tech FCU

Anyone can join First Tech Federal Credit Union by becoming a member of the Financial Fitness Association for $8, or the Computer History Museum for $15. You can apply for the card without joining first. The intro 0% for 12 months and no transfer fee on balances transferred within first 90 days of account opening is for the Choice Rewards World MasterCard® from First Tech FCU. After the intro period, an APR of 11.99%-18.00% variable applies. You also Earn 20,000 Rewards Points when you spend $3,000 in your first two months.

7. Rewards Visa Card from La Capitol FCU – Intro 0% interest on balance transfers for 12 months on balance transfers, NO FEE

Rewards Visa Card from La Capitol FCU
Anyone can join La Capitol Federal Credit Union by becoming a member of the Louisiana Association for Personal Financial Achievement, which costs $20. Just indicate that’s how you want to be eligible when you apply for the card – no need to join before you apply. And La Capitol accepts members from all across the country, so you don’t have to live in Louisiana to take advantage of this deal on the Rewards Visa Card from La Capitol FCU. The introductory 0% interest on balance transfers for 12 months on balance transfers applies to balances transferred within first 90 days of account opening. After the intro period, a 12.25%-18.00% variable APR applies.

8. Visa® Signature Credit Card from Purdue FCU – Intro 0% for 12 months on balance transfers and purchases, NO FEE

Visa® Signature Credit Card from Purdue FCU
The intro 0% for 12 months offer is only for their Visa® Signature Credit Card – other cards have a higher intro rate. After the intro period ends, 11.50%-17.50% Fixed APR applies. The Purdue Federal Credit Union doesn’t have open membership, but one way to be eligible for credit union membership is to join the Purdue University Alumni Association as a Friend of the University.

Anyone can join the association, but it costs $50. The good news is you can apply and get a decision before you become a member of the Alumni Association.

9. Premier America Credit Union – 0% Intro APR for 6 months on balance transfers and purchases, NO FEE

Premier Privileges Rewards Mastercard® from Premier America CU

Premier America is unique because it has the Student Mastercard® from Premier America CU that’s eligible for the intro 0% for 6 months on balance transfers, though credit limits on that card are $500 – $2,000. There is an 11.25% Variable APR after the intro period. There’s also a card for those with no credit history – the Premier First Rewards Privileges® from Premier America CU, with limits of $1,000 – $2,000 and a 19.00% Variable APR. If you’re looking for a bigger line, the Premier Privileges Rewards Mastercard® from Premier America CU is available with limits up to $50,000 and a 8.45% - 17.95% Variable APR.

Anyone can join Premier America by becoming a member of the Alliance for the Arts. You can select that option when you apply.

Other 0% intro APR cards to consider

10. Visa Platinum Card from Money One FCU – as low as 0% intro APR for 6 months on balance transfers and purchases, NO FEE

Visa Platinum Card from Money One FCU

Anyone can join Money One Federal by making a $20 donation to Gifts of Easter Seals. And you can apply without being a member. You’ll see a drop down option during the application process that lets you select Gifts of Easter Seals as the way you plan to become a member of the credit union. Credit lines for the Visa Platinum Card from Money One FCU are as high as $25,000. After the as low as 0% intro apr for 6 months, there’s a 8.50% to 18.00% Variable APR.

11. Andigo Credit Union – Intro 0% for 6 months on balance transfers and purchases, NO FEE

Visa Platinum Card from Andigo
You’ll have a choice to apply for the Visa Platinum Cash Back Card from Andigo, Visa Platinum Rewards Card from Andigo, or Visa Platinum Card from Andigo. The Visa Platinum Card from Andigo has a lower ongoing APR at 11.65% - 20.65% Variable, compared to 12.24% - 21.24% Variable for the Visa Platinum Cash Back Card from Andigo and 13.65% - 22.65% Variable for the Visa Platinum Rewards Card from Andigo. So, if you’re not sure you’ll pay it all off in 6 months, the Visa Platinum Card from Andigo is a better bet.

Anyone can join Andigo by making a donation to Connect Vets for $15, and you can submit an application for the card without being a member yet.

12. ETFCU's Platinum Rewards Credit Card – Intro 0% for 6 first billing cycles on balance transfers, NO FEE

ETFCU's Platinum Rewards Credit Card
You don’t need to be a teacher to join this credit union. Just make a $5 donation to Mater Dei Friends & Alumni Association. The ETFCU's Platinum Rewards Credit Card has an ongoing APR of 10.25% to 17.95% Variable, so you can enjoy a decent rate even after the intro deal ends.

13. Elements Financial Platinum Visa® Credit Card – Intro 0% for 6 months on balance transfers and purchases, NO FEE

Elements Financial Platinum Visa® Credit Card
To become a member and apply, you’ll just need to join TruDirection, a financial literacy organization. It costs just $5 and you can join as part of the application process. The ongoing APR is 10.99% Variable which is lower than typical cards.

14. Justice Federal Credit Union – Intro 0% for 6 months on purchases, balance transfers, and cash advances, NO FEE

Student VISA® Rewards Credit Card from Justice FCU
If you’re not a Department of Justice, Homeland Security, or U.S. court employee (or a few others), you need to join a law enforcement organization to be a member of Justice Federal. One of the eligible associations for membership is the National Native American Law Enforcement Association. It costs $15 to join.

You can apply as a non-member online to get a decision before joining. And Justice is unique in that the Student VISA® Rewards Credit Card from Justice FCU is also eligible for the intro 0% for 6 months on purchases, balance transfers, and cash advances. So, if your credit history is limited and you’re trying to deal with a balance on your very first card, this could be an option. The APR after the intro period ends is 16.90% fixed.

15. Platinum Visa Card from Michigan State FCU – Intro 0% for 6 months on balance transfers, NO FEE

Platinum Visa Card from Michigan State FCU
There is the option to apply for the Cash Back Platinum Plus Visa Credit Card from Michigan State FCU or the Platinum Visa Card from Michigan State FCU. The Platinum Visa Card from Michigan State FCU has a lower ongoing APR at 9.90% APR - 17.90% variable, compared to the 13.90% APR - 17.90% variable APR for the Cash Back Platinum Plus Visa Credit Card from Michigan State FCU which can earn 1% cash back on all purchases. Anyone can join the Michigan State University Federal Credit Union by first becoming a member of the Michigan United Conservation Clubs. However, this comes at a high fee of $30 for one year.

Are these the best deals for you?

If you can pay off your debt within the 0% period, then yes, a no fee 0% balance transfer credit card is your absolute best bet. And if you can’t, you can hope that other 0% deals will be around to switch again.

But if you’re unsure, you might want to consider…

  • A deal that has a longer period before the rate goes up. In that case, a balance transfer fee could be worth it to lock in a 0% rate for longer.
  • Or, a card with a rate a little above 0% that could lock you into a low rate even longer.

The good news is we can figure it out for you.

Our handy, free balance transfer tool lets you input how much debt you have, and how much of a monthly payment you can afford. It will run the numbers to show you which offers will save you the most for the longest period of time.

promo balancetransfer wide

The savings from just one balance transfer can be substantial.

Let’s say you have $5,000 in credit card debt, you’re paying 18% in interest, and can afford to pay $200 a month on it. Here’s what you can save with a 0% deal:

  • 18%: It will take 32 months to pay off, with $1,312 in interest paid.
  • 0% for 12 months: You’ll pay it off in 28 months, with just $502 in interest, saving you $810 in cash. That even assumes your rate goes back up to 18% after 12 months!

But your rate doesn’t have to go up after 12 months. If you pay everything on time and maintain good credit, there’s a great chance you’ll be able to shop around and find another bank willing to offer you 0% interest again, letting you pay it off even faster.

Before you do any balance transfer though, make sure you follow these 6 golden rules of balance transfer success:

  • Never use the card for spending. You are only ready to do a balance transfer once you’ve gotten your budget in order and are no longer spending more than you earn. This card should never be used for new purchases, as it’s possible you’ll get charged a higher rate on those purchases.
  • Have a plan for the end of the promotional period. Make sure you set a reminder on your phone calendar about a month or so before your promotional period ends so you can shop around for a low rate from another bank.
  • Don’t try to transfer debt between two cards of the same bank. It won’t work. Balance transfer deals are meant to ‘steal’ your balance from a competing bank, not lower your rate from the same bank. So if you have a Chase credit card with a high rate, don’t apply for another Chase card like a Chase Slate® and expect you can transfer the balance. Apply for one from another bank.
  • Get that transfer done within 60 days. Otherwise your promotional deal may expire unused.
  • Never use a card at an ATM. You should never use the card for spending, and getting cash is incredibly expensive. Just don’t do it with this or any credit card.
  • Always pay on time. If you pay more than 30 days late your credit will be hurt, your rate may go up, and you may find it harder to find good deals in the future. Only do balance transfers if you’re ready to pay at least the minimum due on time, every time.

The information related to The Amex EveryDay® Credit Card from American Express, BankAmericard® credit card and Chase Slate® has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to American Express credit card offers. See americanexpress.com for more information.

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