Clearing debts by getting more credit cards ? it works!Posted by Nick Niesen on October 29th, 2010 We all, over the course of our lives, sometimes rely on credit to get by. Whether it is for a mortgage on our home, a loan for a car, or a payday loan to get by until next Friday, there?s little we can do to escape the effect of a debtors society. But the way you handle your debt is something you can have a say in, and indeed the way you do so could mean you save ? or spend ? thousands of dollars a year. Let?s imagine you have a few credit cards on the go. One of them, the card you had since you were in college, has a few grand racked up on it, and because you missed a few payments way back when, the interest rate is at 19%. Ouch. But most of us never look at the interest rate we?re paying, because, quite frankly, we don?t give it a second thought. MasterCard says we owe them $184 this month, so we pay $184. But it doesn?t have to be that way. Many credit card companies will give you a card, albeit with high interest after a period of time, that for the first 6 months to a year comes with 0% interest on all credit card transfers. What this means is, if you use your new card to pay a big chunk of your old card, you pay no interest on the new card for a set period of time. Now, of course once that time is up, they?ll put you right back on the expensive interest rate, but for a short time, the money you pay on your credit card is ALL-principal. Credit card companies don?t like you doing this too much ? in fact, they?ll put it on your credit card report if you do it more than a couple of times ? but if you?re looking to get out of a short term financial logjam, look for those introductory offers and use a new card to pay off your old card. Oh, and when you do ? shut the old card down! Like it? Share it!More by this author |