Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Balance Transfer Cards and other Financial Planning topics.
You've probably heard many stories about people who benefited from balance transfer cards. These folks, after careful planning and research, transferred the balance of their high-interest credit cards over to a new low- or no-interest balance transfer card. They used the introductory period to double up on payments and paid off their entire balance before the interest rate increased.
Unfortunately, the follow-up to this story is often that the people then continued to use the balance transfer card to make new purchases and, in a couple of years, ended up transferring the balance to a new card and starting the cycle all over again.
When you have the opportunity to transfer your balance, be sure to use it as a reason to overhaul your spending. Begin to buy only those items you can afford to pay cash for and stop the cycle of debt so you can offer your family a more secure and fiscally responsible financial future.
|Jennifer Mathes, Ph.D.|