If you have a credit card with a balance, you might be paying more interest than is necessary on your debt.Â Perhaps you’ve considered “surfing” your balance from one card to another.Â Well, this can be a great way to save money, but before you transfer a balance from one card to another, be sure to do the math and consider the following:
1.Â Will I be able to completely pay off the debt before the introductory rate goes away and is replaced by the standard rate of the new card?
2.Â Is there a balance transfer fee?Â Will I be better off leaving my debt where it is or moving the debt and paying the balance transfer fee?Â Do the math!
3.Â If I move the balance from card A to card B, will I put card A away and focus on paying off card B?
4.Â Do I fully understand the balance transfer’s terms and conditions?
5.Â Have I called my current credit card and asked, once a month, for a reduced rate?
6.Â Am I kidding myself or am I really committed to rapid debt reduction?
If you can answer the above questions and go into it with “eyes wide open”, surfing a balance from one card to another card can be a great way to save money.Â But, if you are unsure, worried, or if you feel like you are being taken advantage of, leave your balance where it is.Â I would rather pay a little more in interest and avoid making a foolish, detrimental mistake.
Have you dealt with a credit card balance transfer? Leave a comment and let us know. If you are a blogger, write a post about surfing credit card balances, and contact me. Iâ€™ll be more than happy to link to your post.
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