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Get Out Of Credit Card Debt in 18 Months with a 0% APR

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1debtsruvryOne of the hardest things to do is to pay off credit card debt but a 0% APR promotional financing offer can be extremely helpful. But these offers are only valid for a limited time, and at the moment, the longest financing offers come from Citi’s Simplicity and Diamond Preferred cards. For 18 months from when their account is opened, cardholders will not incur interest on new payment or balance transfers.

Payments need to retire debt in 18 months

Let’s take a look at three different debt scenarios and how cardholders can pay off their balances within 18 months.

1.       $2,000 of debt. At a 15% APR, cardholders will need to spend $124.77 each month for 18 month to pay off their balance. But with 18 months of interest free financing, that $2,000 charge will only require payments of $114.44 each month for 18 months. While the savings each month is just over $10, the total savings is $186.

2.       $5,000 of debt. With the same 15% APR, the cardholder would need to pay $311.92 each month. With 18 months of interest free financing, the cardholder pays only $277.77 each month, for a savings of $34.14 each month or $614 total.

3.       $10,000 of debt. At 15% APR, the cardholder pays $623.85 each month for 18 months to pay off the debt. But with a promotional financing offer, the debt is retired in the same time by paying only $555.55 each month. With the promotional financing, the monthly savings equals $68.30 and the total savings is $1,129.

Other options

But what if a cardholder is unable to pay off the debt in 18 months? Let’s take a look scenarios where the cardholder is able to pay off 4% of the debt each month.

1.       $2,000 of debt. Paying 4% of the debt each month is $80. After 18 months of 15% interest, the cardholder will have paid $789.30 and have a $1210.70 balance remaining. But with 0% APR, the cardholder will have paid $1440 for a difference of $229.

2.$5,000 of debt. A 4% payment will be $200. After 18 months at 15% interest, the cardholder will have paid $1974 and have a remaining balance of $3026. But with a promotional financing offer, the payments amount to $3,600 and only $1,400 remains. Here, the difference is a dramatic $1,626 in principal remaining.

  • 3.       $10,000 of debt. Paying 4% each month is now $400. After making these payments for 18 months while incurring 15% interest, the cardholder has reduced the principal by $3,946 and still owes $6054. But with the same payments and 0% APR, the cardholder has paid off $7,200 and has only $2,800 outstanding. That is an amazing difference of $3,254.


The more the cardholder owes, the more money he or she can save by utilizing a promotional financing offer. But due to the compounding effects of interest, the savings results are even more staggering as the original principal amount increases.

compare all credit cards that offer 0% APR balance transfers hereYou can learn more about these offers below or .

Editor's Note: This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by the Citi or any of the other companies whose products are featured in this content.

About the author

Jason Steele

Jason Steele is a freelance journalist specializing in personal finance and travel and is recognized as an expert in credit cards. He is a regular contributor to many of the top personal finance sites such as Wise Bread and Money Talks News. His work has been frequently carried on mainstream news outlets such as MSN Money, Yahoo, Finance, and Business insider.

Jason lives in Denver Colorado with his wife and two daughters.

– has written 350 posts.

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