0% Credit Cards

Gary North

Oct. 30, 2010

We are seeing offers for credit cards at 0% interest. You can switch from your high-interest card to one of these. You can get them to take on your old card's debt for as little as 3% of the balance. That's a nice deal.

Check the fine print. You want at least two years with this 0% rate. Check other details. Here is a list:

//www.garynorth.com/snip/1022.htm

The card companies expect people to switch, then spend. They think people will still get tempted by the cards. They assume that "once a debtaholic, always a debtaholic."

I recommend switching, but with this proviso: you do not use the new card. If you use plastic, use a debt card. Better yet, write a check. That forces you out of the plastic-pay habit.

These 0% offers are like cheap meals in a Las Vegas casino. The owners want to get you into the casino. Eat the cheap meal; don't play the slots. The same applies to 0% credit cards.

Use the lower rate to pay down your present card's debt faster. The goal is to get out of the trap, not buy more cheese.

For 275+ more tips, go here:

//www.garynorth.com/public/department54.cfm