Is it smart to transfer credit card debt to a new card?
I’m pretty close to the maximum limit on my credit card (I owe $7,200 and the limit is $7,500). I’ve already cut up the card and changed my spending habits and I’m pace to pay it off over the next 12-18 months. Problem is, the interest is killing me. If I pay the minimum monthly balance of $300 then the next month I get charged $200 in interest, so my monthly payments are barely chipping away at the balance. Is it smart to apply for a new card with zero interest on balance transfers and transfer my balance? If I could get 12 months of no interest then I could bring the balance down significantly and get close to zero, but I hear that doing this affects my credit score, at least during the short term. Should I stick with my card?
Eliminating high interest credit cards by transferring to a card with a lower rate can help you save a great deal of money, allowing you to regain control of your finances. However, it is important that you understand all of the terms and conditions of your new credit card before committing enrollment. You want to make certain that the card offer is fair and that you are truly going to benefit from it. Featured are tips that will help you choose and use the right credit card for transferring balances.
Pre-determining interest rates
Most balance transfer offers are good for only the first 6-9 months of enrollment. At the conclusion of the introductory rate, the card will convert to a more standard rate, typically between 14-20%. It is important that you determine what the interest rate is going to be once the intro rate is over. If you are not sure what interest rate the card is going to be charging at the conclusion of the intro offer, call the issuer and find out. Read more about it at: http://www.credit-card-gallery.com/article/173,Credit_Card_Balance_Transfer_Tips
Investing & Money Management : Zero Balance Transfer Techniques