With the strong competition in the credit card market, companies have started offering the 0% card, which offers no interest, for the first two years. People are expected to clear off their debts in that first two years. However, LoveMoney states that a survey has found about 34% of the people end up having a debt after the two years. One in every three people is not paying off their credit card debts on time.
Increasing debt level
12% of the people who have the outstanding balance believe that they will not be able to settle off the debt before the 0% interest rate period expires. This would induce a 3% fee, which would push them deep into the debt level.
Introductory period cut off
These cards usually provide 2 years of 0% time period. However, if the person misses a monthly payment or if late monthly payment is made then the offer lapses. The negative aspect associated with it is that about 23% of the people do not know when their offer period gets expired. The customers of the age between 18 to 24 years have the highest probability of losing their benefits earlier.
Make sure to keep a track of your credit card spending, to avoid more debts. Pay off the minimum balance every month and try to add a little more to it, to settle off before the 0% period lapses.