Low-interest Card the Answer?
by Dave Ramsey

Right now, I’ve got $2,500 in credit card debt. I’m thinking about transferring the balance from my current card to another one that has a much lower interest rate. Is this a good idea?

Dear Dave,

Right now, I’ve got $2,500 in credit card debt. I’m thinking about transferring the balance from my current card to another one that has a much lower interest rate. Is this a good idea?

Trevor

A lower interest rate will help you save a little money. But the problem is that it can also make you feel like you’ve addressed your problem with debt when you really haven’t. Keep in mind, too, that most of those low-interest or no-interest credit card offers are good for only a short period of time. There’s always a catch! Emotion is a key element to getting out of debt and staying out of debt. You’ve got to get steaming mad at debt, and attack it with a vengeance. Really let it sink in, and think about how many times this debt has negatively impacted your life. Think about all the important stuff, all the great stuff – all the FUN stuff you could have done with that money instead of sending it to those bozos at the credit card company.

And here’s some great news, Trevor. You can sell some stuff, or take on an extra job for a little while and completely wipe out that debt in less than a year by making $250 payments every month!

Lots of people make the switch to low-interest rate credit cards. But you’ve got to change the behavior and the mindset that put you in that situation in the first place.

If you don’t get mad at debt and make a stand where you’re determined never to borrow money again, you’re liable to find yourself back in the same bad situation.

Dave