While rolling your credit card debt onto a new card that offers 0% interest for a period of time is usually a smart money move, there are some people who shouldn't do it. This reader is one of them. DailyFinance's Laura Rowley explains why.

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Transferring any balance to a card with a 0% interest rate is ALWAYS a good idea! And anyone who says anything to the contrary either doesn't have good financial (or common)sense or is profiting from you paying more interest.

October 27 2011 at 3:56 PM Report abuse rate up rate down Reply
Wm Good

I pay the total balance of my credit cards twice a month. One of them has a 24% interest rate but that doesn't matter because I don't pay interest at all nor do I pay yearly service fees. I use them as charge cards for the convenience of not having to writie checks or carry too much cash. The banks get the merchant fees from all my charges of course but nothing from me. But I realize the majority of Americans don't do this. Credit cards are called "stupid cards" by Dave Ramsey. That's really not true. It's many of the credit card users who don't use them intellegently. Anytime you look at your credit cards think "same as cash" and "do I have it?" Many people don't have that mindset which is why McDonalds recently started taking CC's. CC users tend to spend about 48% more than people using cash. CC debt is a curse on the land, and don't ever forget is a snake that can and will bite you hard if you don't watch what you're buying!! On the other hand it's a useful tool that can serve you well. It's when you run up balances you know you can't pay that you become the CC's slave. As for transfering balances to avoid interest, no. That's just going from one trap to another and not solving the problem of CC debt. If you're having financial troubles, the best thing you can do is close your CC with a balance and start paying it down as best as you can, even a smaller than the minimum amount but pay something until you get back on your feet. When you recover and have more coming in, make getting rid of these balances a top priority. Sit down and figure out what you spend each month and allocate the funds to meet your needs. Peace of mind and a savings account go a long way toward lessening the stress of debt. It's a shame personal money management isn't taught in our high schools as a required course. Above all, you don't need anybody to tell you how to manage your life and money. You can do it all yourself with effort and discipline.

October 27 2011 at 6:30 AM Report abuse rate up rate down Reply

the best way to keep out of debt and I know it is hard today, but don't use a credit card at all!! Banks want you to go into debt so that they have a constant cash flow, good for them not for you. It is hard when your down and out but it is not worth all the greef if you get behind with high costs and a very high interest rate. Only take a 0% credit card if you are sure you can pay it off in the time given other words it is not worth it!! Remember the banks are not into giving money away but to make money with high interest!!!!

October 26 2011 at 6:31 PM Report abuse rate up rate down Reply
1 reply to ajt1025's comment

I use a credit card, but it doesn't matter how much interest they charge as I pay it in full every month. (A plus is that I get cash back . It's not much, but it's better than paying!). I realize that may not be feasible for everyone, however.

October 26 2011 at 10:44 PM Report abuse +1 rate up rate down Reply

If you encounter opening up an no interest credit card such as a debit card, perhaps not to build yourself any interest for your behalf. When you inaccur a credit card you build interest but , dont go beyond your credit limitations dont over charge unless you really occupy it..

October 26 2011 at 1:53 PM Report abuse rate up rate down Reply

I use a Discover card for almost all of my purchases, but I am careful to not load it up beyond what I am able to pay when the monthly bill comes due. Do not incur excessive monthly interest payments.

October 26 2011 at 12:13 PM Report abuse +2 rate up rate down Reply

Transfer and double down on the bills

October 26 2011 at 10:33 AM Report abuse rate up rate down Reply
Dr. Jason Cabler

I have the inside track on the best 0% interest deal out there. It's called DON'T HAVE A CREDIT CARD. You absolutely can get along in life without credit cards and you can be debt free if you just make the effort. It's only about 20% knowledge and the rest is just being committed to the process.

I teach the participants in my Celebrating Financial Freedom course that when you get yourself out of debt, you are no longer in bondage to those payments that drag you down and cause you worry and stress every month. That's the best 0% interest plan there is, bar none!

October 26 2011 at 10:09 AM Report abuse -3 rate up rate down Reply
4 replies to Dr. Jason Cabler's comment