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Running argument regarding credit card debt
 Scott,
I have been reading the articles
on your website for a few months and find the information very
interesting and helpful.
My husband and I have a running
argument regarding credit card debt.
We are just starting to get our
credit report back into order and I am starting to look for ways to
save money regarding interest payments.
He gets very upset when I look at
the offers we receive in the mail to see if the APR is lower than
any of the cards we currently have and even think about transferring
the balance. I am always interested in the 0% offers, but he says
that creditors don't like to see you transfer balances over and over
to 0% because it shows that you can't handle the balance
"load".
Any ideas on how I can show him
that it makes sense to move balances to 0% or lower interest rates
to save money?
Tracy
Tracy,
Thank you for your kind words about
my website and articles!
You're very smart, I like to say
"DebtSmart," for keeping your mind on the task of saving
money on your debts!
This argument should end because you
are absolutely correct!
 I
know many people that don't want to transfer their balances for
various reasons. I realize that it's a lot of work to stay on top of tracking
the details of the offer. However, if they calculate how much they
will save by transferring, I'm sure they'll decide it's worth the
effort.
Also, some that believe that
the banks will be "mad" if you're transferring your
balances. They are not your friends, they are a business and need to
be competitive. Call your existing credit card bank, and give them a
chance to keep you as a customer by lowering your rate.
If they cannot accommodate you,
transfer your balance. Undoubtedly, they will miss your business and
will soon send you new offers for lower rates than they had been
giving you. The new bank will hope that you stay with them even
after the low introductory rate ends, but of course you, being
Debtsmart, wouldn't do that.
Remember that a loan is a product.
Why would you shop at the more expensive store (bank with the higher
rate)? It just doesn't make sense.
Transferring your balances to low
rate cards shouldn't affect your credit score, but it will affect
the amount of interest you are giving to the banks.
You can check out my list of feature
cards for low rate offers here.
Hope that helps!
Talk to you later.
Scott
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