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Is a Credit Card Balance Transfer Wise?


Have you ever received a Credit Card Balance Transfer offer in the mail? Many of us have and some of us have used this financial tool in the hopes of helping ourselves reduce debt. Is this practice of credit card balance transfer wise? The answer depends upon your actions after you have executed this procedure. Here is what I mean.

NO, it is not wise to transfer a credit card balance unless you begin to use your available credit and credit cards wisely. For example . . . If you transferred a $6,500.00 balance from a credit card (Credit Card A) to a new or existing credit card (Credit Card B) at Zero Interest for 12 months it relieves you of that interest for those first 12 months only. At a 22% interest rate that would save you approximately $1,300.00 over that 12 month period. After that 12 month period, the current interest rate of (Credit Card B) begins adding interest to your unpaid balance transfer amount. Okay, so far this sounds pretty good, I saved approximately $1,300.00. Kevin Smith can teach you why this sounds better than the trap that it really is.

VISA & Master Card Love Credit Card Balance Transfers

If you have used Credit Card A from which you transferred the original $6,500.00 over that same 12 month period, then your attempt to reduce credit card debt will begin to hurt you. Your available credit on Credit Card A went up when you were able to use a credit card balancecredit-card-balance-transfer-showing-confused-woman transfer offer. This process can only help you if you do not add more credit card debt to Credit Card A and you are reducing credit card debt from Credit Card B. Having available credit is not the same as having Cash on hand. Often times folks who use this type of program end up in more debt than when they originally started. The wise use of your credit and applying as much money as possible to the interest deferred offer of Credit Card B is required to make these Credit Card Company’s marketing programs work to your benefit, not theirs.

For the answer to be Yes to the question of “Is a Credit Card Balance Transfer Wise?” you must pay down Credit Card B as much as possible and not add any new purchases to Credit Card B as well. You must not also add any new purchases to Credit Card A. Just because you now have available credit on Credit Card A it does not mean it is available for discretionary spending. Use it for emergencies only. Help yourself. Don’t let a Credit Card Company’s marketing program trick you into thinking that your financial problems are over. Credit Card debt is controllable if you are willing to learn how to use it wisely. Contact Kevin Smith today for help with this confusing issue.