Balance Transfers

Before when I still had outstanding credit card debt, I would take advantage of balance transfer offers to get 0% interest. My debt was never more than $2,000 and I could always pay it off in whatever time-frame specified by the new cardholder.

My rules for doing this are: 1) Close the old account. 2) No new charges. 3) Divide the balance by the time of the introductory rate and make every payment on time.

I have (and always have had) excellent credit so once I choose an offer there is no problem getting approved. On the oline application there is a section to list the account numbers and amount to be paid. They take care of everything for you. All you need to do is call then write the old company to close the account.

Here's an article from SmartMoney.com that is interesting:

If You Really Want to Be Clever

Play your cards right, and you can even use a balance transfer offer to earn money. Here's how: Say you use a 12-month, 0% balance transfer offer to write a check to yourself and sock away $10,000 in a high-yield savings account earning 5.05%. Still making monthly payments of $150, you could pay back the remaining balance in full at the end of the year — and come away with $475 in earned interest.

I see what they are saying and can see HOW it works but I don't like it. There is no such thing as a free money and I'm leary of doing this. While I do have the discipline to make the payments and not touch the principle I still don't recommend it. I've read some bloggers who are using this method and I'll have to watch and see if they have any problems.


$4.37 prescription
12.50 Pepsi
2.00 50/50