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General · 10-31-2007, 02:06 PM

Hello, I have 16000$ in credit card bills. I transfer 75% of it to other credit cards with lower interest rates and will save my self a few hundred dollars for like a year. Is there a downfall to this credit wise??? My old interest rate was 24% and my new rat is 3% 2. I transfer balance from all my bills in to 6 low rate credit cards. Is this a bad thing? Will i be paying more in the long run? Any suggestions? Thanks!

200pips · 10-31-2007, 02:06 PM

The downfall is that you are using credit cards. Usually, the credit card company charges you money for the transfer. More then likely it is only a teaser rate and in 3 months to a year the rate will go up. Also, if you are only paying the minimum balance or close to it, then it will take years (or decades for a large amount) to pay it off. What you should do is control your spending. Another option is to get an unsecured loan to pay off all of your credit cards. There is a company where you can borrow money from that is easy to apply and a small fee to pay off all of your cards. The loans they offer are three year loans. Email me at rice.j@hotmail.com for more info.

Max · 10-31-2007, 02:06 PM

The biggest downfall to people doing balance transfers and consolidation loans is they don't control their spending.

What they do is consolidate their cards, then turn around and run up charges on their now-empty cards. The next thing you know, they are now maxed out again, twice the amount in debt, and end up filing for bankruptcy.

I've seen this happen over and over. A few years ago getting consolidation loans was the rage...the next year they had a record number of bankruptcies.

10-31-2007, 02:06 PM	#1
General Greenhorn Join Date: Jul 2006 Posts: 13 Rep Power: 0	what are the downfalls of transferig credit card balances to low intres rates. i need some help? Hello, I have 16000$ in credit card bills. I transfer 75% of it to other credit cards with lower interest rates and will save my self a few hundred dollars for like a year. Is there a downfall to this credit wise???<br />My old interest rate was 24% and my new rat is 3% <br /><br />2. I transfer balance from all my bills in to 6 low rate credit cards. Is this a bad thing? Will i be paying more in the long run? Any suggestions?<br /><br /><br /><br />Thanks!<br />

10-31-2007, 02:06 PM	#2
200pips Piggy Bank Join Date: Jul 2006 Posts: 54 Rep Power: 6	what are the downfalls of transferig credit card balances to low intres rates. i need some help? The downfall is that you are using credit cards. Usually, the credit card company charges you money for the transfer. More then likely it is only a teaser rate and in 3 months to a year the rate will go up. Also, if you are only paying the minimum balance or close to it, then it will take years (or decades for a large amount) to pay it off. What you should do is control your spending. Another option is to get an unsecured loan to pay off all of your credit cards. There is a company where you can borrow money from that is easy to apply and a small fee to pay off all of your cards. The loans they offer are three year loans. Email me at rice.j@hotmail.com for more info.

10-31-2007, 02:06 PM	#3
Max Piggy Bank Join Date: Jul 2006 Posts: 67 Rep Power: 6	what are the downfalls of transferig credit card balances to low intres rates. i need some help? The biggest downfall to people doing balance transfers and consolidation loans is they don't control their spending. What they do is consolidate their cards, then turn around and run up charges on their now-empty cards. The next thing you know, they are now maxed out again, twice the amount in debt, and end up filing for bankruptcy. I've seen this happen over and over. A few years ago getting consolidation loans was the rage...the next year they had a record number of bankruptcies.

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