Thursday, March 13, 2008

Credit Cards....Good Or Evil

I recently signed up for a new credit card. Although I have an existing credit card balance, I feel this was the right thing to do. I selected a card with a 0% balance transfer for 12 months and no transfer fee. These are hard to come by but if you want to check it out, go here. I plan on transferring over the entire debt from the first card to the new card. I calculated the payments by taking the total amount owed and dividing that number by eleven. That way I know that it will be paid in full before the 0% offer expires. I will not use this card for anything else during that time. I hope to not use the card ever again after that. You must be very disciplined to do this. If I make a late payment or go over the allotted 12 month period, they will hit me with the finance charges dating back to the inception of the transfer. This is why it is very import to be careful, setting up automatic payments is a good idea in this case. The bank that I use for paying all of my bills offers this so I will probably use it. I have not used it before so we will see if it goes well. If so, I may start using it for other things as well. This will eliminate the possibility of having late payments. Obviously, this can only be done on bills that are a known amount every month and that amount does not change. So…in approximately 11 months, I will have another debt gone. This will leave me with only the Home Equity Line Of Credit, (HELOC), to deal with besides the mortgage. I cannot begin to tell you how good it feels to get these debts out of the way and start the wealth building for retirement.

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