Many people I know don’t keep track of how much they pay their credit card company in interest every month. When their statement arrives, they tend to look at the balance, the amount due, and perhaps peruse the charges they made during that billing statement. What is commonly overlooked is the extremely important interest charge.

At Smart Balance Transfers, we have a balance transfer calculator that can be used to help estimate how much a person can save with a 0% balance transfer. In general, it is safe to assume that for every $1000 a person carries in credit card debt, they will pay an average of $140 in interest. This number is based on an average interest rate of 14%. With some reports claiming the average household has close to $8000 in credit card debt, a 0% balance transfer can save over $1000 a year in interest charges by taking advantage of a 0% balance transfer.

The amount of savings one can reap with a credit card that offers a 0% interest rate on purchases as well as balance transfers is somewhat tougher to determine. The primary reason this is a tough calculation is the fact that when you spend money on a 0% APR credit card plays a big roll in figuring your savings. For example, if you spend $1000 on a new 0% credit card in the first month, you’ll save about $140 on that spend over the course of a year. However, if you spend $1000 in the sixth month you have your card, you’re savings will be less than $70.

A good way to maximize your savings with a 0% interest rate is to get a new card right before you are about to spend a significant amount of money, such as before the holidays or to pay for a vacation. Say, for example, you intend to spend $2000 on holiday gifts in a month. Over the course of a year, having a 0% interest rate will save you close to $300.

Smart Balance Transfers lists all current 0% APR credit card offers on our main site. For more information, see www.SmartBalanceTransfers.com.