This is a low or 0% APR offered for a limited time on purchases, balance transfers, or both. It can provide a crucial interest-free period to pay down existing debt faster, but you must know the regular APR that applies after the intro period ends.
Your net worth improves through the interest you avoid paying. The money that would have gone toward future interest payments is instead preserved as part of your assets (your cash) or can be redirected into investments, which are appreciating assets.
This is a strategy where you make minimum payments on all debts but put any extra money toward the debt with the highest interest rate first. This method saves the most money on interest over time.
Yes, a core mission of non-profit agencies is to provide free financial education, including budgeting workshops, resources, and one-on-one coaching to help you develop long-term money management skills and prevent future debt.
The most common examples are mortgages (secured by the house) and auto loans (secured by the vehicle). Other examples can include secured credit cards (backed by a cash deposit), and some personal loans that use a savings account or certificate of deposit as collateral.
