Millennials have more than $5,000 in credit card debt, can interest-free debt get people back on track?

Zero interest credit cards are one of the ways to dig yourself out of a financial hole, but you should be very careful when you go this route.

TOLEDO, Ohio – The average millennial is close to 5 thousand dollars in debt according to Experianbut there are ways to get out of that financial position.

Credit card analysis Ted Rossman, from bankrate.comsay it can come down to the type of credit card you apply for.

“If you have an average credit card balance, which is about $5500 according to Transunion, and you only pay less than 19.6 percent, you will be stuck in debt for about and 17 years. Rossman said.

Millennials with credit card debt can carry that interest with them for years if not paid in full.

According to Rossman, one solution is to apply for a zero-interest credit card and leave all your debts.

“The competition is pretty tough. We’ve seen Bank of America, Citibank, and Wells Fargo all offer cards with up to 21 months with no interest,” Rossman said.

Some credit cards you can apply for to help you save on interest include:

  • Wells Fargo Active Cash Card which currently offers 15 months at 0 percent APR (annual percentage rate).
  • Bank of Americawhich offers a zero interest credit card for 21 billing cycles.
  • CITI Diamond Best credit card, which offers no percent APR for 21 months on balance transfers and 12 months on purchases.

But here’s the catch – and it’s important. Once these promotions are over, the APR for these cards will skyrocket – up to 28 percent based on your credit history, 9 percent above average.

Remember, the goal of putting all of your debt on an interest-free credit card is to pay down your debt, not to accumulate more.

That’s why experts say that young people should make a financial plan before applying for a credit card with no interest. Then use a check or cash to pay for purchases until the credit is cleared.

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