Should I Transfer My Credit Card Balance To A 0% Interest Account?

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[todd]

WOW! Interest rates on credit cards were at 6-15% back then... now, they're around 25%-29%.

[isaacortiz]

Ramsey is right here. If you do the transfer you better be super aggressive on paying off the debt as fast as you can and not create any new debt which is always the danger. Change the behavior and kill this enemy called debt. I'm winning now because ive changed my behavior. Thank you Lord for wisdom.

[tanyaalfonso]

Yes! Been there, done that several times. Dave mentions it's a mental issue we have when getting rid of debt. We learn nothing by consolidating to a lower interest credit card. It might be temporary, but if you haven't changed the way you spend money, you will only be right back where you started several years later and digging an even deeper hole. This has been my experience! Working to change this now! Baby step 2!!

[aeromedical]

I love it. “I moved my CC debt to a 0% CC and saved what would have been $1200 in interest over the next year.
With all that hard work behind me, I can take a break from this whole paying off debt thing for awhile. In fact, I think I’m gonna go celebrate my victory at Ruth Chris tonight. And, since I don’t have to worry about some nasty ole interest for the next year, my $400 minimum payments will really start crushing my $22K balance! Debt freedom is just around the corner!”

[roseamy]

In my situation, going from an interest card to a 0 % for 21 months for example, that card would be paid off so much faster. Right now I am paying interest and a portion of my card off, and I rather pay the portion than the interest because this damn interest is not doing me any favors right now.

[jhern]

Having a plan is the most important part.

[iulgwfw]

Interest IS the problem!! My interest charge is 450 bucks outta the grand I drop in my card. I transferred balance over to a zero interest card and paid it off in 13 months! How can you say the 450 monthly interest charge is not the issue ?? If I had to pay the interest it woulda took me 10.03 years to pay it off !!!

[kalicloud]

"The danger is feeling like you did something" so true lol

[samuelleake]

4 years later and its still relevant today seeking the advice i need. thanks dave and great question Jason im in your position now, move the balance still gazelle

[ronwhiteleo]

Move the money to the 0% balance card and stick to the plan and pay it off.. and cut up your card.. simple... but move it though..

[beeteezee]

TY for your help and advice, i just did a balance transfer and i am CHANGING MY WAYS! :)

[allsmiles]

"Don't knick debt, CUT IT!" Very powerful.

[catllionare]

But you'll feel like you did something at the end when you paid it off if you stuck to the plan. But it's important to never fall back on the same old patterns tho

[charleshzlet]

My coworker says for years he kept moving his balance to various cc companies who gave him no interest, he would do so before the interest would be added n save a ton!

[moneywithmoni]

I recently posted how I used $25k in balance transfers to pay down my mortgage. I'm almost done paying them and can't wait to redo the process.

[JWalton]

One thing to remember is that you might not get approved for the entire amount of your debt. This guy needs to get approved at the start for a $12, 000 credit limit.
So you might just end up opening another credit card for nothing.

[ThePeterDislikeShow]

You have to be careful though some cards have a clause that if you're not paid off after 12-18 months they add a balloon interest charge.

[RandoPandaSmiles]

I would love to see Dave author a book on Family Business Succession Planning.

[brettself]

If you can't pay off your debts within the zero interest period, at the very least, get your debt below 30% of your available credit. If you have a balance transfer account available, move your interest charging cards to it and do the math. That <30% will help your credit. Of course, zero is where you want to be, but getting everything at zero or <30% will strengthen your credit (as long as your accounts are in good standing/pays as agrees). So, let's say zero debt isn't something you can get to in the zero interest period, at least schedule your plan to get you below the threshold of a poor DTI (debt-to-income) ratio. Once your debt is at <30%, start plan B to eliminate that amount. Debt is daunting. If you can't do it all, do what you can and, as Dave says, "attack it aggressively"!

[SiXiam]

His advice 7 years ago is that 10% of the problem is interest rates. Now given the high credit card interest rates, it increased. Interest rates on credit cards are now 20% of the problem. So do the balance transfer and pay it off before they raise the rates back up.