Comments on: The Dangers of Promotional 0% Interest Rate Credit Card Balance Transfers

By: PT

PT — Thu, 01 Jan 1970 00:00:00 +0000

If you’re unable to pay off the balance by then, AND you can find a nice balance transfer deal without a big fee, then, yes, making a second transfer probably makes sense. And there should not be a penalty (I’ve never heard of this). All the old card company knows is they’re getting paid. If you want to be extra careful about this, ask the new card company to simply deposit the balance transfer amount in your checking account. Then, just pay the old card off with the money. Thanks for asking, and good luck with getting rid of the debts.

By: Jimmy

Jimmy — Thu, 01 Jan 1970 00:00:00 +0000

I was a bit confused as well when I first read the “don’t pay off too early” bit of advice, but I understand now what you mean. I have one question, however, is there a penalty if I want to take advantage of the %0 on balance transfer and make a second balance transfer before the period expires? I made a balance transfer back in March and the %0 period will be up on June. Would making another transfer balance at %0 be advisable? Is there a penalty?

By: PT

PT — Thu, 01 Jan 1970 00:00:00 +0000

@weakonomist and MK – yeah, I could likely beef that section up to explain that better. thanks for the feedback.

@ben – dude. gold has nothing to do with this post. if you want to talk about gold in the comments of every post, then might i suggest you write me a guest post and I’ll share it with everyone.

@My Journey – yeah, that’s the thing with these transfers. so much that can trip you up.

By: My Journey

My Journey — Thu, 01 Jan 1970 00:00:00 +0000

I wish my wife had read this post before I did all my balance transfers! She charged something dumb to one of the cards I did the 0% transfer to. I get an interest payment every month for .50 – literally 50 cents until that last $3,8000 is paid off.

By: MK

MK — Thu, 01 Jan 1970 00:00:00 +0000

I’m with the weakonomist on this one. The part about paying it off too early almost makes it sound like there could be penalties enforced by the card issuer. Not the fact that if you pay it off before the 0% intro rate is up that you wouldn’t be gaining any intrest on that money in a savings acount.

Otherwise great post!

By: ben matulich

ben matulich — Thu, 01 Jan 1970 00:00:00 +0000

the real danger is being in the dollar or fiat currency in general, gold is the way to go

By: the weakonomist

the weakonomist — Thu, 01 Jan 1970 00:00:00 +0000

You might want to provide some more details about the “paying off too early” thing. When I first read it I read it as there being penalties for doing so. Most people do these transfers because they don’t have money to begin with. I see your line of thinking, but I was confused for a second.