[USER]

Thinking about a $0 interest credit card to use as a balance transfer for another credit card to be able to pay it off.

Other than the $0 interest what else should I be considering?

Or is transfering balances not a good idea?

[Cindy]

Transfer balance is only good if you can pay it off in the time their give you.

Be aware there is also a transfer fee.

[Margaret]

Change your spending behaviors first. Go 2 months without charging anything, then consider doing a balance transfer.

Many people transfer debt to a zero % card, but rack all the debt right back up because they keep spending on credit.

As long as you acknowledge that moving the debt is not the solution, creating no more debt is what gets you financial freedom.

[Marg]

I think it’s a good idea- if you are able to pay it off within the time frame. If not- transfer to another card before the 0% runs out- the transfer fees will still be less than the APR in the end.

But what I would suggest is- if you have a $0 balance card (or close to), see if you can transfer to that before applying for a new one.

Keep in mind- it has to be transferred to a different company, not the same.

Ex: Citi will not allow you transfer your balance to get 0% on another Citi card.

Good Luck! Debt sucks especially when it gets to be too much for a person.

Been there- done that.

[Steven]

What is your action plan to get the debt paid off, how much per month, how does it fit in your budget, are you going to close the other card,?

Shifting it around seems like it eases the pain but what if it’s still there 2 years from now and now have more debt accumulated on the credit cards?

[Rachel]

I used it to pay off my debt. I just set up automatic payments to have it paid off before the expiration date of the offer.

[Annette]

I think good or not is about personal finances. If you know for sure you can pay it off before the deadline, and you think the fees are worth it..

then sure.

I have used zero interest cards for unexpected bills and paid them off before the deadline.

[Suzan]

things to consider as well are the cost of the transfer (either or both cards might charge) and that if you can’t pay it off before the 0% runs out, you might be liable to repay the % it changes to retroactively

[Shelley]

It’s a great idea! Try to find one with a low balance transfer fee.. normally 3%.

Be sure to pay it off before the zero percent goes away so you dont get slammed with back interest.

Also.. don’t close the original card as your credit score will go down!

[Janelle]

What’s the transfer balance fee (this is upfront)? Do you have a time period to pay it off before the 0% interest ends?

If so, when it ends, is the default interest rate retroactively applied if not paid off?

There are lots of hoops to jump through with transferring balances, so watch out for all the opportunities to pay fees upon fees.

[Krista]

Its an excellent option if you are sure you will pay it off before the promo period ends

[Brenda]

There’s a transfer fee to consider and you need to look at your long term budget to make sure you can pay the balance off completely by the end of the promotion period.

Your credit score will dip with a new card also. If the comparison of payoff periods/costs will be beneficial, then it makes sense.

But unless you’re actively working a solid debt payoff plan, it can make things worse.

[Virginia]

Check the time limits. If you can pay it off quickly, a 12 month card may be enough.

An 18 month card may include fees, but it may be kinder to your budget.

[Mary]

Make sure to read the fine print. Check for fees and when it needs to be paid in full.

[Melissa]

Read the fine print. It is only 0% for a short time. The interest increases significantly after that time.

If you cannot pay it off in the set 0% interest, don’t do it.

Get a second gig and put all earning to your loan.

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