THE 0% INTEREST TRANSFER CREDIT CARD

Now there is some good marketing - all looks good until the fine print.

Q: Could it make sense to use it?
A: Depends on your plan and ability to pay it off within the promotional period.

Why can credit card companies run these promotions again and again?

If you guessed that the majority of people (95%) do not pay it off, you got it.

Balance transfer cards allow you to switch to a temporarily low interest rate, or no interest rate for a certain period of time. What you should note:

• Missing or late payments may terminate your promotional interest rate.
• There is an upfront balance transfer fee of anywhere from 1-5% with 3% being the most common
• Different cards will have different promotional rates, lengths and fees.
• For new purchase on the transfer card, the promotion rate will usually only apply to the balance you transferred. That means for new purchases you’re charged the higher regular rate and when you make a payment, it is not necessarily divided accordingly, which means you could be paying some good interest on those purchases.

With a 0% APR card, you are not charged any interest during the 0% period. That interest is waived entirely. Once that period is up, you can be charged:

• interest only on outstanding balances going forward
• OR
• if it is a deferred-interest offer, you will be charged retroactive interest going back to the original purchase date.

READ THE FINE PRINT. Each promotion and card is different. This card can cost you more in the end so be very cautious and aware. Read and call and ask a zillion questions.

If you are going to take advantage of this card to pay off debt, have crunched the numbers and read the fine print, then put the card away after the transfer and...

NEVER, NEVER, EVER Use it - just pay it off!