1 year, 4 months ago
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Paying off credit card debts with another credit card, is that wise?
A friend of mine seems to have done that for years! Paying off one credit card debt with another credit card that is cheaper. How can this be done, is it profitable, is it a wise thing to do?
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M$1 Answer
Paying off credit card debt with another credit card can be wise. You have to be really careful when you do it. This is usually done when the debt and interest rate on one card are both really low and the debt and interest rate on another credit card are really high (or if the first card has a low promotional rate for transferred credit card debt). You can save some money that way if you pay off the entire balance of the debt you are transferring while the rate you are paying it off at is still low. The money you save is the difference in the interest charges that would accrue on the old card over the same time period. Doing a balance transfer, as it is called, does allow you to get rid of a credit card and extra credit card payment and can help you pay down your debt faster as long as you don’t accumulate any more new debt after you pay off your old debt.
From Wikipedia.com
-quote
A credit card balance transfer is the transfer of the balance (the money) in a credit card account to an account held at another credit card company…. Such an arrangement is attractive to the consumer because the new bank or credit card issuer will offer incentives such as a low interest or interest-free period, loyalty points or some such other device or combination of incentives.
-endquote
From Wikipedia.com
-quote
A credit card balance transfer is the transfer of the balance (the money) in a credit card account to an account held at another credit card company…. Such an arrangement is attractive to the consumer because the new bank or credit card issuer will offer incentives such as a low interest or interest-free period, loyalty points or some such other device or combination of incentives.
-endquote
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