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I have 4 credit cards with interest rates from 5.99% to 21%. I just got an offer for a credit card that would be 0% on balance transfers until the balance is paid off. Would it be smart to transfer all my credit card balances to the new card with 0% interest?
There are lots of offers available for transferring credit card balances to another card with a lower interest rate. You need to read the find print to know if the offers are really good deals.
Transferring your balances to lower rate credit card can reduce your interest costs. But before you do it get the facts. Find out:
o how long the new interest rate will last (there’s probably a limit on the time you have to pay off the transferred balance).
o the interest rate on new purchases and how the rate will change over time.
o if there is a balance transfer fee.
Compare all this information to your current credit cards. If you there is no transfer fee and the rates for new purchases are equal to or less than your old cards, you could save money by transferring the balances from all 4 cards to the 5.99% interest rate card. Be wise--if you do transfer your balances, cancel the other credit cards right away. This way you won’t be tempted to run up the balances again.
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