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You make it's tons of credit card offers in the mail but you may wonder which one did she news 0% balance transfer seemed to be the answer to your credit card dilemma.
If you have -- -- greater near existing card.
But could actually put you deeper into debt here to help -- John Alzheimer president consumer education -- -- credit dot com John welcome great to -- -- That thanks for having me Gerri appreciate it our right so let's talk about is -- -- balance transfer credit cards you know people get fed up with the rate they're being charged.
They want -- 0% offer they get one in the mail should they take it.
Well these -- percent transfer offers are back thankfully they went away for about a 36 month hiatus.
In the middle the credit crunch and pre card act.
But they are obsolete back with a vengeance -- this is a purer financial plight if you are paying.
Any thing in the average interest rate democratic party's -- is about 15% which is pretty -- even -- that's just the average.
And you get -- offer in the mail all at 0% for twelve months 24 months or even longer in some cases.
And you are disciplined enough to be Smart about it and it's not a bad idea but you've got to be able to qualify for these these are just these -- -- -- -- everybody right now or what's the potential downside.
Allow arcade a potential downside is just as big as the potential outside the potential downside is you.
You get one of these new cards you transfer the balance off of not only one existing carpet several existing cards.
And then you go right back in charge those existing cards up again and now -- -- in debt twice over.
And the balance transfer offers don't come any longer because of the amount of debt that -- -- But that's my fault that's not the credit card operators follow -- I do that right I mean.
Are -- things I need to watch out for from those credit card operators.
I I love your dose of reality Gerri it is always our fault we get into debt no one now stands behind us with Madonna says darn it get into -- John.
It lucky you have to be disciplined enough to not.
Get back in this white suburb relate the reality is the most consumers and I don't I don't think I'm exaggerating here are -- are addicted to credit cards and addicted to using credit card and so frankly.
They should have fewer of them and may not necessarily want to keep the all the cards open if they do in fact get a balance transfer offer.
That's enticing to them you know you run it through the shredder or keep it open because there's a credit -- benefit there but at least the car doesn't exist any longer so it can't be stolen and it can't be you well.
I remember a time where -- when there were rollover fees it was actually very dangerous thing to do to roll over debt onto another car even a 0% card.
Because you didn't really you may not have understood exactly what you were being charged for the privilege of doing that is that still a problem.
Or did the new federal on credit cards actually change that.
While like let's be real honest about this a credit card issuers are not nonprofit -- they're not all to rest next.
They're out for the almighty buck so the average balance transfer fee for these types of cards as a shade over 3% that in an.
-- be problematic yet while you can find out about that you might help them pay 29% interest to 0% interest -- -- what -- I can't tell the debt not that that's going to be dangerous.
It's absolutely expensive to do -- but the long term gain that's the difference between a quick -- slow Donny and actually I bet you better down the road.
If you do a good job aggressively attacking that debt and then when you come out of that safe harbor -- 0%.
Bigger balances low enough to where the new interest rate which hopefully is lower than it was on the original -- anyway is.
Is something that's at least somewhat manageable -- what you've got to be very aggressive during that twelve to 24 month period and Whittle away at that -- as much as you possibly can't.
Or really just nothing but delayed the inevitable by two year are ever gonna Whittle away.
What -- way at all.
All right John thanks for the help today really appreciate it.
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