If you have a solid credit score you can often take advantage of 0% APR balance transfers offers to reduce your interest payments for 6 to 12 months. Unfortunatley, due to the new credit card legislation and the economic downturn, most issuers have pulled back many of the promotions that they have offered.

Before you apply, take into consideration that the introductory offer you get still depends on your credit score. For most credit cards you will need a very good credit score to qualify for a better deal. You may apply for a credit card with 0% balance transfer APR but instead only qualify for a 6% intro APR.

Here are things to pay attention to when signing up for a new credit card which offers 0% apr.

• What is the balance transfer transaction fee? Most credit cards will charge you a percentage of the amount up to a certain cap.
• What is the regular interest rate after the introductory period?
• How long does the introductory rate last?
• Does the intro rate apply to balance transfers, purchases, or both?
• What is the annual fee?
• What are the late fees and overlimit fees?
• When you receive your new credit card in the mail, read the credit card terms carefully and make sure you got the deal you applied for. Keep in mind that one late payment could increase your 0% interest rate to a penalty rate of over 20%.

When you transfer a credit card balance, keep your old credit card until you receive a statement showing that your balance is $0. If your goal is to reduce your credit card debt and you no longer need your old credit card, cancel your old credit card to avoid using it.

If you are like most people, you have a lot of bills with a lot of different due dates. Rent and mortgage payments are usually due on the first of the month. Credit card companies each set their own due dates for your credit cards. If you find yourself in a cash flow squeeze because your credit card bills are due before your second paycheck, you can eliminate the problem by changing your credit card due dates.

Most credit cards will let you change your due date to a more convenient date. Call your credit card company’s customer service line and ask to speak with a representative. When all your credit cards are due on the same day, it will also be easier to keep track of your monthly expenses.

Meredith Whitney, one of the first financial analysts to accurately report on the credit crunch back in Oct 2007, wrote an interesting opinion piece for the WSJ. Ms. Whitney believes that Washington needs to act now to avoid another credit crunch. Six months earlier, she estimated that credit card companies will reduce credit card lines by $2 trillion by the end of 2010, and now she has revised her estimate to $2.7 trillion. Here are some of the main points in the article:

• Credit card lines play a crucial role in the American economy because credit card debt is revolving – that is, consumers pay off their credit cards and use their credit lines repeatedly over time.
• The decline in home prices has been a better determinant of consumer behavior than FICO scores. In the past, credit card lenders were too reliant on FICO scores and the bulk of credit lines were extended when unemployment averaged below 6%. Hence credit card companies are reducing their credit lines significantly in the current economic environment. As lenders reduce credit lines based on where a borrower lives, trustworthy customers are put in a more vulnerable position along with bad customers.
• When one credit lender cuts a credit line, the credit card owner is perceived to be riskier by other lenders. Consequently, the other lenders also become more likely to cut the available credit lines.
• Upcoming changes in the Unfair and Deceptive Acts or Practices regulations will restrict the ability of credit card companies to reprise risk (in other words, increase interest rates as they see fit) and, as a result, may cause a further decrease of credit available to consumers.

Ms. Whitney acknowledges that credit was overextended in the past 15 years but she is concerned that taking away credit from trustworthy borrowers will weaken consumer spending, and consequently, the economy significantly.