There’s been alot of talk lately about using 0 percent balance transfers. At first glance the ideas behind these offers seem obvious. You just transfer high interest debt on over to 0 percent credit cards and save money that you use to lower your debt.

What if you don’t carry any high interest debt right now? Would you still be able to use 0 percent credit cards? I would say the answer is Yes. Below are the steps taken to use 0 percent balance transfers to gain funds that are then used as savings or investments.

Show Me The Money

The easiest way to aquire the money is to request a balance transfer check from the card issuer and deposit it into your bank account. If this is not possible there are other alternatives. You’ll need to get another credit card, one without a current balance would be ideal. (Card #1) Then apply for a card that offers 0 percent balance transfers. (Card #2)

Now you request a balance transfer from (Card #1 to Card #2). This will cause (Card #2) to make a payment to (Card #1) resulting in a negative balance. Now all you will need to do is request a balance refund. Sometimes you can do this online, if not, then make the request over the phone.

Let Your 0 Percent Balance Transfers Do The Work

You now have two choices at this point. You can deposit the funds in a high yield saving account making 5% or more. You should avoid any fees to maximize your profits.

Choice number two is for those of who do have high-interest credit card debt. Utilize your 0 percent balance transfers and apply the money you save towards paying down your debt. In choice number two your profits are from not paying interest.

Final Note

A downside to this idea is your credit score could suffer a little. Your debt to utilization ratio increases when you max out your 0 percent credit cards. This problem can be avoided by having other cards that you won’t be using at all. The empty credit cards will offset the large amounts on your other cards

Thats all you need to know in order to use 0 percent balance transfers to pay down your debt. The key to success is determination. When the going gets tough stay focused on your goal.