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12 Tips On Transferring Credit Card Balances That You Won’t Want To Miss

12 Tips On Transferring Credit Card Balances That You Won’t Want To Miss

Transferring credit card balances can be a great move financially. It can get you out from under exorbitant interest rates and give you a fresh start on making payments. Some credit cards even have low introductory rates from zero percent to 5 percent that can make paying off your balance easier and faster. That said, transferring credit card balances is a slightly convoluted process that you should be more educated about before proceeding. Here are some tips to help you figure it out.

1. Your debt will get bigger before it gets smaller.

Back in the day, transferring balances used to come at a rate with a maximum fee. That means you’d pay 3 percent or something like that for a certain amount but no more than $50-$75. These days, transfer caps are gone. If your balance is small then this isn’t a big deal but if you have thousands of dollars in credit card debt, the transfer fee can add up quickly. It is unavoidable but make sure you know how much will be added back onto your debt when you transfer the balances.

2. The introductory interest rates can be a trap!

Like we mentioned, some credit cards come with introductory rates between zero percent and 5 percent. These typically last for 6-12 months. If you cannot pay back your balance before the introductory rate, then you should pay attention to what the regular rate will be. These higher rates can range from 12 percent to 18 percent or even higher depending on your credit. Do yourself a favor and sit down with a calculator and make sure you’re actually saving yourself money by switching over!

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3. If you don’t pay your dues, they’ll make you pay in other ways.

While we’re on the topic of introductory rates, let’s talk about what happens if you don’t pay your bill. Pretty much all credit cards will cancel your introductory rate and give you the regular rate if you fail to make payments on time. Remember folks, there is no grace period when transferring credit card balances. Do not skip a payment or it can cost you!

4. Don’t neglect your debt while transferring credit card balances.

The process of transferring balances from one credit card company to the next can take some time. Experts say that it can take a month or longer for the process to complete. During this time, you’re still responsible for paying your bill every month. We’ve already discussed what can happen if you don’t make payments on time. Don’t sabotage yourself!

5. The best rates are reserved for those with good credit.

Sadly, those of us with bad credit don’t get the same features with new credit cards that people with good credit will receive. You may see credit cards that brag about having low introductory rates but if your credit is bad then those rates probably aren’t meant for you. It’s not uncommon for people with bad credit to be forced into taking less appealing offers like no introductory rates and higher APRs overall. You can still apply and try for things like introductory rates but don’t base your financial future on credit card features you may not be eligible to receive.

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6. Even more introductory rate confusion.

Some credit card companies will only give you the introductory rates for the amount of your balance. This means any purchase you make could be subject to the regular APR. For example, let’s say you transfer your balance of $3000 to the new credit card at the introductory rate of zero percent and then you go buy a laptop for $500. The $3000 would have the zero percent introductory APR while the laptop would be subject to the regular APR. Here is the kicker. Since most credit card companies apply payments to a split-rate account to the balance with the lower interest rate, that means that $500 will continuously increase until you pay off the $3000.

7. Don’t be a transfer junkie.

After reading through here, you may be thinking of getting a credit card with an introductory rate and then transferring to a new credit card with a new introductory rate in a year. It sounds like a good plan but you can be penalized for doing this. If you transfer your balances too many times, your credit can be penalized. Since paying off a credit card is supposed to increase your credit score, doing anything to prevent that is actually counterproductive.

8. Slash your cards.

This isn’t a technical tip but rather a figurative one. Due to all of the confusion and complexity of transferring credit card balances, it’s probably in your best interest to just hack up the cards. The accounts can remain open but let’s face facts here. If you’re in the kind of financial crunch that can motivate one to transfer balances, then you should probably not give yourself an opening to make it worse. Cut up the cards, pay off the debts, and many of the pitfalls we discussed today don’t apply to you.

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9. Take your time and find the best deal

This applies to everything, ever. Finding a credit card with a 12-month introductory APR of zero percent may sound great, but paying 18 percent APR after that could be very bad. Meanwhile, there may be a card out there with a flat 12 percent rate that would be a better deal in the long run. Shop around, do the math, and find the deals that will save you the most money. Do not get suckered into a bad deal because of an appealing opening offer. Finally, be especially careful of the old bait-and-switch tactic. An example of this is being pre-approved for a certain card with a certain balance and a certain rate but when you go to officially apply, you end up with something much worse than that. Unfortunately, this does happen.

10. Don’t try too hard or you’ll never get it done.

As with any other loan process, applying for a new credit card requires a credit check. It’s pretty much common knowledge that if you ping your credit over and over again then it will cause your credit to go down. If you can’t secure a credit card after a couple of tries, it’s best to give up and try again in a few months to avoid harming your credit because otherwise you may lower your credit which will just make it harder to get another credit card!

11. If you don’t slash it, then don’t spend it.

Earlier we suggested that you slash the old and new credit cards and we stand by that advice. However, we also understand that you may need to keep one of them around for emergencies. Spending $250 on a credit for shoes is a horrible idea but spending $20 in gas to get home because you don’t get paid until the next day is totally understandable. Should you decide to keep your old or new credit cards around, we recommend you don’t spend anymore money than absolutely necessary.

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12. Why are you in this situation to begin with?

If you’re transferring credit card balances then you are in some sort of financial trouble. Generally, the only two reasons people transfer balances is to switch to a card with a lower rate or because they’re experiencing problems with their current credit card and need a fresh start. In either case, look into what caused this problem. While transferring balances can save you money in the long run, it won’t save you that much money month to month. If you’re having trouble paying your credit card now, you’ll have trouble later too. Fix the underlying problem and you may be able to avoid this whole mess!

Wrap up

The bottom line is simply this: be educated. Make sure you read everything before you sign any paperwork. Don’t let fast talking customer service reps try to rush you. This is your money and your life and if you don’t feel in control of the situation then take a step back and assess the situation. There are no shortcuts so work hard and get it done.

Featured photo credit: Digital Trends via digitaltrends.com

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Joseph Hindy

A writer, editor, and YouTuber who likes to share about technology and lifestyle tips.

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Published on January 17, 2020

How to Eat Healthy on a Budget (The Definitive Guide)

How to Eat Healthy on a Budget (The Definitive Guide)

Have you ever looked at health gurus and wondered how on earth they can afford all that health food? Or maybe you’ve tried multiple times to start eating healthy only to find the $600 monthly budget overwhelming?

If you’re anything like me, you know exactly what I’m talking about! I absolutely understand the sinking feeling of looking back over a grocery budget and finding you went way over what you intended. And besides that, it can be hard to justify buying a tiny $5 bag of carrot chips while a $1 mound of potato chips is sitting right next door.

My husband and I recently ran into that struggle. We got married this past year and soon found ourselves trying to balance 12 hour work-days with keeping our relationship strong and trying to keep our personal businesses afloat. Granted, our budget was the one thing that took a hit! After we started tracking our spending, we were shocked to see we were spending over $1000 a month just on food! A little planning cleared that right up.

So, how to eat healthy on a budget?

Here’re the top tips I learned that helped us shave over $600 monthly off of our food budget so we could reinvest that in the areas that really mattered to us![1]

1. Meal Plan

You’ve probably heard the saying “Fail to Plan, Plan to Fail” right? Well, this saying couldn’t be any more true than in the area of healthy budgeting! The fact is, most healthy foods don’t actually cost that much… the pre-made time saving ones do!

If you go about creating a healthy meal plan within your budget, you could easily cut costs down to around the same price you are paying for junk food.

Meal planning is as simple as working in foods you already have in your fridge/freezer, adding in several meals with simple ingredients and seasonal veggies, and breaking it down into a shopping list.

Often, finding a few meals to make in big batches will save you the most money in the long run, which leads me to my next point.

2. Cook in Bulk

Not only will cooking in bulk save you a whole lot of time, it will save you a whole lot of money too! Believe it or not, if you find meals to make with similar ingredients, you can easily save more money than when you were eating unhealthy.

Don’t believe me? Just look at a $4 frozen pasta dinner. Now, sub that with a veggie pasta dinner. 5 zuchinni ($3), Pasta sauce ($2.50), and chicken ($5) could last you a full 5 meals which adds up to a whopping total of just over $1 per meal!

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That’s not even digging in to all the money you will save from fast-food. Trust me, a little $10 spent here and there add up! You’ll be saving a whopping amount from all the meal prep you will do!

3. Cook all Your Meals in One Day

The science behind this is 2-fold.

Number one, if you have lots of meals to grab and go, you will be far less likely to binge on pricier food when you get hungry. Let’s be real, you’re not going to spend 1 hour cooking when hub-n’-grub is at your bekon-call!

Number 2, meal prepping ahead of time will help you stick to your meal plan better when you’re not in the mood. Let’s face it, we’re all going to have days when protein and veggies doesn’t exactly sound appealing. But, if you have a full meal that’s quick to grab in the fridge, it will be easier for you to fill up on the good stuff rather than spending money on what you don’t really need.

4. Cut Back on Snacks and Specialty Items

I can almost hear you from across the screen. “But, I thought snacks were good for me!” Here’s the deal: Snacks are expensive! And healthy snacks, oh my goodness, say goodbye to your paycheck!

Look, I’m definitely not saying that healthy snacks are bad. Quite frankly, I would much rather you chow down on Halo Top than a triple-butterfinger-fudge sundae. It’s just that… healthy snacks are why eating healthy gets a bad rap for being expensive.

Look at it this way: You could either buy a week’s worth of groceries full of chicken, fish, beans, veggies, and fruits for $30. Or, you can spend that $30 on six snacks that will leave you hungry for more.

What’s more, the ingredients for gluten-free baked goods, sugar free substitutes, or protein powders alone will add up to you eating a full week’s budget in one sitting. By all means, if you want to work some yummy items into your budget, do it! But don’t confuse that extra monthly $300 of delicacies as a necessity. Your body and budget will thank you!

5. Satisfy Yourself with Your Favorite Subs

We all have an emotional tie to food. Maybe pasta reminds you of home! Or maybe a fresh-baked pizza is what gives you a feeling of comfort. Whatever you favorite food, find a way to work it into your budget in the best way.

We’re only human, and depriving ourselves of what we love will never end well. More often than not actually, it ends in take-out or a pricey-premade substitute.

Instead of finding yourself in this situation, find a way to make your favorite foods fit your budget. Zuchinni noodle pasta might just give you that feeling of home without breaking the bank. Or maybe you could google a healthy pizza alternative you would like that you could make at home. Often, something similar to your craving will be enough to give you a sense of satisfaction.

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Or, just buy your cheat meal and save it for a special day. That’s okay too!

6. Stick to the Cheaper Proteins

Okay, I know we all love steak. Unfortunately, buying pre-cooked or expensive cuts of meat are one of the easiest ways to drain a budget.

Instead of purchasing those, try buying frozen chicken or eggs. A 5 lb bag of frozen chicken can be as cheap as $5, and you can buy a whole weeks worth of eggs for just over $1. You could even try going vegetarian for a few meals if you really want to cut down on costs!

7. Buy Frozen Fruits and Veggies

I know, we all love our fresh fruits and veggies! However, sometimes frozen might be the way to go if you’re looking to cut costs!

Fruits and veggies are easiest to ship when frozen, making them a much cheaper option. Contrary to popular belief, scientists have actually found that frozen might be better for you too![2]

The reason is, frozen produce is picked at its prime and shipped immediately. Fresh fruit tends to be picked much earlier so it will ripen while being shipped. Not only does this make it less nutrient dense, but sometimes the fruits are actually pumped with artificial flavors to make up for the lack of real nutrients.

While I’m all for fresh fruits and veggies, don’t feel guilty if you opt for frozen foods due to a budget.

8. Bump up the Calories with Rice and Beans

The problem some people find when trying to eat healthy is that it can be hard to get the amount of calories you need without relying on expensive “specialty” items. Instead of stocking up on pricey gluten-free breads and pasta, I say stick to simple rice and beans as the bulk of your meals.

Brown Rice is very cheap and easy to use as a base for bowls and dishes. Likewise, beans can add a bit of fiber making you feel full and satisfied without having to spend a lot of money.

If you are trying to cut on body fat, use extra veggies as the bulk of your meal and add in rice and beans as a filler.

9. Try Acai Bowls

Acai Bowls can be a really cheap and satisfying meal as long as you do it right.

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You can find cheap fruits at most stores or just freeze your fresh fruits before it goes bad.

Making your own granola can save you a lot of money as well. The total cost for this delicious meal should only add up to a few dollars compared to triple that price if you were to buy one pre-made.

10. Make Your Own Meal Kits

Do you like your meals freshly cooked? Sending meal kits to your doorstep is an easy way to drain your budget. Instead, try making your meal kit at home! Not only is it fun, you will easily get a delicious taste.

Simply find a few simple meal cards or print some out and fill a ziplock with the ingredients for each specific day. Don’t know what recipe to make? Another option is to order one month of meal kits and recycle the recipe into ingredients for the upcoming months with ingredients you picked up from the store.

11. Don’t Drink Your Calories

A few dollars spent here and there can really add up! Just as with specialty items, healthy drinks can be a blackhole for you. An energy drink and kombucha and coffee each day could easily have you spending and extra $300 each month!

I you really need a special drink fix, try making your favorites at home. Bring a coffee in, make kombucha, or even try making lemonade with stevia or a healthy soda. You’ll be surprised w hat a big difference such a small change can make on your budget!

12. Buy Cheap Online

Just like anything else, it pays to be prepared. Buying foods from online retailers can be a really affordable way to save money as long as you’re prepared.

Plan ahead for those more expensive specialty items you can’t live without. It will save you tons of money compared to having to buy food from a specialty store.

13. Don’t Fret about the Clean Fifteen

One of the huge things that can mess with a person’s budget is eating organic. For the record, I am 110% all for eating organic whenever you can. However, for some people, it can be hard to make organic food fit into a budget.

Instead of scratching healthy eating for a smaller budget, try to buy meat and the dirty dozen organic, and don’t go crazy about the rest. The clean fifteen are the fifteen safest foods to buy that aren’t organic! Meanwhile, the dirty dozen is the most worthwhile avoiding. According to Produce Retailer, these are the dirty dozens:[3]

  1. Strawberries
  2. Spinach
  3. Kale
  4. Nectarines
  5. Apples
  6. Grapes
  7. Peaches
  8. Cherries
  9. Pears
  10. Tomatoes
  11. Celery
  12. Potatoes

14. Pay Attention to Storage

Keeping the food you have is just as important as how much food is in the first place. Try to stay on top of how much produce you can actually use before it goes bad. It might not be a bad idea to pencil an extra shopping trip in the middle of the week to keep food fresh.

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Investing in good food storage containers could go a long way in saving you in the long run as well.

15. Freeze Food Before it Goes Bad

Instead of getting mad at yourself at the end of the week for all the wilted produce you need to throw out, try freezing it before you get to that point.

Most frozen veggies will taste delicious in stir fries and soups. You can freeze fruits to make sorbet or smoothies. Frozen greens can be chopped up and tossed into just about anything for a nutrient boost!

16. Consider Ditching Most Supplements and Powders

I have nothing against superfood powders and supplements. However, if your budget is tight, it can be hard to fit supplements and powders in.

Instead of adding in powders, add extra nutrients to you food. Add lots of greens and veggies to all your meals to meet your nutrient needs. If you need a specific supplement, you can find great deals online as well!

17. Use Budget App

There are so many great apps you can download for free. One of my current favorite is HoneyDue because you can track your budget easily with your spouse. There are many options available, just find the one that you’re most likely to use. The ones that download your spendings automatically are often the easiest and will give you a more accurate number.

My husband and I use the same app, but have a separate budget for each of our weekly food plan and for our additional snacks. Keeping things separate can often be helpful to know exactly where your money is going. Plus, it can help hold you accountable if you have a significant other you are sharing money with.

18. Use What you Have

Most people have unused protein powders lying around in their cabinets. Instead of letting that go to waste, work them into your meal plan. Protein powders can make amazing doughnuts, pastries, or pancakes!

19. Enjoy the Process!

Finding ways to enjoy your new lifestyle will be helpful in sticking to it long term. Find fun in seeing how much you can save each month. Make a competition with someone to see who can stick to the lowest budget and create something fun to do for the winner with some of the money saved! Blast some music in the kitchen while cooking your new recipes.

Budgeting and health doesn’t have to be a drag. Make it fun and you’ll enjoy your new lifestyle long-term!

Featured photo credit: kevin laminto via unsplash.com

Reference

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