There it is again. That credit card offer stuck in your mailbox advertising a big, fat 0 in the APR column. Transfer your balance! it says, hoping you will take full advantage of their generous offer, leaving all your interest woes behind. At least, that's what they want you to think. The company making the offer does, in fact, deliver on their promise. You apply for the new card, transfer your balance, and receive no added interest on that balance. The trick is all in the timing and a lot of other little things as well. Yes, you will have a 0% APR, but only for a certain amount of time. Each card will make you different offers. Some might have the 0% last for six months; others might be bold and have it last for a year. But what you need to consider is the amount your balance currently is and the amount of time it will take you to pay off said balance. Will you be able to wipe out $7,000 in several months?

For many students the horror stories about falling victim to credit card debt make it easy to forget that there are many good reasons to sign up for a credit card as a college student. The most important reason is to establish your own credit history. When it's time to transition from college to the real world, you will find that in today's society it can be a very difficult without a credit record. Your credit history is looked at by potential landlords, lenders, and even employers. You could find yourself turned down for an apartment or a car loan if you apply and there is no credit record for them to refer to. Even if you able to get approved, you could find yourself paying an enormous deposit or being charged an outrageous interest rate. Even getting the lights and telephone turned on when you do find a place to live could well cost you more if you don't have credit. Without a credit card, many utility companies will require a $100 deposit which you won't get back for a year.

The true cost is your sense of what is real money and what is debt. Too many people see their credit card as another form of income. They make the deadly mistake of thinking that using it won't cost them to use it. Most people in deep debt lead catastrophic lives. The cost is more than financial - it is demoralizing spiritually and emotionally to never to be able to overcome credit card debt. Overwork due to financial stress and health problems as a consequence are also a common side effect of owning a credit card, that is if you don't know how to manage it.

Probably the best approach is to completely adjust your spending habits and track what you are spending where. You need to look at where you are leaking the most money that you don't have. You need to create a budget and stick to it. This budget should include a couple of luxuries as well as the bare necessities of life.

Most people get into credit card debt because they suffer delusions about their personal finances. The fundamental problem is that you are living beyond your means and postponing the inevitable bankruptcy.

Whatever you do, don't let a debt collector talk you into paying with postdated checks or by electronic payments. Always pay a lump sum with a money order. Unfortunately when you pay a debt with a post dated check or through using an electronic payment you are putting your trust in shady types. Unscrupulous bill collectors have not problem going into your count and draining it once they have your account number.

One of the best ways to get a debt collector off of your back is to request a written notice of whatever he or she is calling you about. According to the law, a debt collector must send you a written notice telling you the amount of money you owe and the name of the creditor. If within 30 days of receiving this collection notice you write a letter back disputing the debt, a debt collector may not contact you again until they can verify the debt.

Even with online banking becoming increasingly common, some credit card companies charge extra fees for paying your bills online or by phone. If this is the case with your card, be sure you pay your bill by mail as soon as the statement arrives. You don’t want to have to pay an extra $5 or $10 just to make your credit card payment on time each month.

An annual fee is a charge sometimes required by credit card companies for use of an account. These fees usually range between $35-$50 and are most common with subprime credit cards designed for borrowers with poor credit and rewards credit cards. You can see exactly what the annual fee on a credit card offer is by checking out the "Schumer Box" in the rates and terms section of the offer.

An annual fee is a yearly charge that you have to pay for the privilege of doing business with the credit card company. In the beginning of the credit card business all you ever paid was an annual fee and no interest at all! The amounts vary considerably from card to card. Some cards have no fees at all but usually this type of card has less perks to it in general or a higher interest rate.