More about balance transfers

It’s a great idea to get the lowest rate possible for any debt you have. That way, more of your repayment money goes to actually paying the debt and not just interest. However, most 0% offers only last a short time… check the terms of the offer. The 0% rate is most likely a promotional rate and after the promotional period, they will raise the rate really high (most likely more than you are already paying). Also, most banks will charge a balance transfer fee (like 3% of the amount transfered). That could be a heft amount and might make the whole thing not a good idea. Basically, read over the terms of hte offer carefully, get out a calculator and try to figure out if you’ll save money or lose it….

I guess it’s something to look at. Just make sure you read the fine print. Those 0% balance offers are usually a introductory rate. Some are for 6 months, some a year, it varies so make sure you find out.

Also, when you transfer from one card to another, make sure you close out the previous account.

Make sure you pay on time. A lot of them will void the 0% rate if the payment is late.

I don’t know what effect it has on the credit reports.

I’m actually working on not using credit cards at all these days. I have one open in case I break down on the road, but I don’t use it for anything else. It’s difficult because I do purchase some supplies online. I now only shop where I can print out a order form and order the old fashion way, check and stamp in snail mail.

Remember if you’re only paying a little more than the minimum balance, it may not cover the finance charge. What I do to make sure the balance goes down is pay the minimum payment plus the finance charge for that month and maybe a little more. That way you should see the balance decrease steadily.

If you want to be a bit more ambitious and can afford it, if you pay $100 plus a little more than the finance charge each month, you will definitely see the balance be reduced by $100 a month.

Thanks for all the advice. I have been paying over the amount due each month. I have read the fine print on that 0% offer. It is only for one year, but if you are even one day late on a payment, it jumps up to a 17% interest rate. So, I am better off with what I have. I will just pay more when I can. It is gradually getting there.