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Doing some simple math shows that you can save money by acquiring a no or low-interest card. If you have a credit card that presently charges 20% interest and you're carrying a $5,000 balance, you're going to pay $1,000 in interest in one year if you keep the balance at $5,000 during that time. With a card charging a low-interest rate of 13%, you'll pay only $650 in interest over twelve months, which means a savings of $350 or 35%! Obviously, a 0% interest card will result in no interest being charged, saving you the full $1,000. That's a substantial amount of money in your pocket. |