Balance Transfers - How They Help!
Last Month I was having dinner with two other people. One of them started to mention how she has no money and that she was hoping that the credit card company would raise her credit limit so she could spend more. Immediatley I looked at her and asked why? She currently has an 18% interest rate on her card and is near her credit limit. So every month she said she is paying the minimum, but the interest charge is equal to the payment so she is not making a dent in her debt. That’s when I mentioned for her to switch to a balance transfer credit card. By doing this she could switch to a new card with no interest rate for most likely a year. If she does that she can make her payments each month and start to climb out of the debt she is in. Now I know this is just one example but there are many others out there with the same issue. Sometimes Balance Transfers are the way to go. I don’t reccomend doing them very often but in this case it is just what she needed. Needless to say she has taken my advice and is now working her way out of debt.