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** CAUTION **
Credit card companies are in the business of doing business, and part of doing business is to attract customers.
One common way of attracting new customers for many credit card companies is to offer premium low introductory annual interest rates.
Most credit card offers are very good deals when you consider, that some credit card offers make it possible for you to transfer credit card balances from competing credit card companies with high annual interest rates, to your new credit card with a lower annual interest rate, resulting in saving you lots of money in interest charges.
In fact, this is a very good credit card strategy for saving money.
However, as with every credit strategy, it takes Control, Discipline and Restraint for you to gain a benefit.
Here’s what I mean.
As a new customer, you might be offered a premium annual interest rate of 0% to 8% on any balance transfers, and maybe even any new credit card charges, for a limited period of time, let’s say, the first three months.
If you are not careful and ignore the calendar, the limited period of time may come and go without you taking any action, and if this happens, the premium introductory interest rate will expire, and then, the new annual interest rate may skyrocket up to an enormous annual interest rate of up to 29.99% percent!
CAN YOU FEEL THE PAIN!
This can easily calculate into HUGE interest charges overnight, and very likely, bury you deep in debt.
Before you take advantage of a lower interest rate offer, make sure that you KNOW the exact terms and make certain that you can pay down your credit card charges in full before the introductory offer expires.
Before you consider taking advantage of a low introductory offer, you should take into account a few things;
- How secure are you at your job
- How is your personal health
- Do you risk losing time at work resulting in a lower paycheck
- How much ready cash do you have in reserve
- Is your transportation reliable
- Do you depend on your spouse to pay your bills
- How is your family dynamic
- Are your expenses steady or do they fluctuate
When you look at this type of strategy to save interest charges, there is a level of risk.
So, if you can answer the above questions in a positive way, then you are in a good position to move forward.
However, if you cannot, you may want to stay away from this type of move and try working on increasing your level of income to pay down your debt, or you may dig yourself into a debt-hole that you may not be able to climb out of.
Goodwill Credit can help turn your bad credit into good credit and make your good credit even better. SUBSCRIBE NOW.
