The Problem with Credit Card Balance Transfers

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We receive them in the mail every day. They are those pesky envelopes that are offering us 0 % interest for the next 12 months. On the surface, not only does it sound like a good deal, but it is also very tempting.

But let�s consider a few things. If you are carrying a credit card balance, unless you had an unusual emergency, you are probably not all that disciplined with your finances. So, what happens when you transfer your balance to that shiny new card you just got? Now have an old card that has no balance on it at all or in other words it has lots of available credit.

What are you going to do with all that available credit? Statistics show that most people use it. Now not only do have a balance at 0% interest, but now you have a balance on the card that you transferred from.

Bottom line is if you have a balance on both cards, you didn�t gain any ground by transferring it to another card, because now you have 2 cards each with a balance. If you are going to transfer to a card with a lower rate make sure you are the one with the advantage and not the credit card companies.

Marjorie Salada is the owner of debtmanagement1.com, a website that contains information on debt consolidation, debt settlement, debt counseling and how to manage credit card debt.