You’ve got the 3 months pay slip after landing your first job and you were so excited to get your first plastic money. Everyone seem to be swiping one during the Mega Sales and you wouldn’t want to be left behind in the credit clique. The credit sales guy offered you 0% APR for the first 12 months but do you know what is APR in the first place and how it will wreck your life slowly but surely..haha!
Wake up to the reality! Don’t immediately sign the form you obtained for Credit Card Offers.
Understand what it is all about before your commit yourself to the burdensome debt. If you can get 0% APR Credit Cards then it is much better except that the 0% wouldn’t last forever.
The deal is only an intro or a teaser for maybe 12 or 15 months. But I found few local credit cards that offer up to 24 months 0% APR on purchases but the normal APR when you signed up for their cards is still 18% in the first place.
Personally having 0% APR is great if you know how to manage it. With the deal, you can avoid interest charges on the new purchase of the 42 inch LCD TV, and if you have other credit card debt you can also transfer your existing credit card balances and pay 0% interest!
This is all true provided that you pay all within the period that the 0% APR deal is still valid. If you can’t manage to pay all within the 12-15 months 0% APR period then just calculate how much interest you have to carry on in your financial lifespan.