All Posts Tagged With: "credit cards"

Jeff writes: I’m about $5500 in credit card debt that I want to get out of before I go back to school in August. I’m thinking of taking up these offers for low interest rates on balance transfers I get in the mail from new cards. Is it worth the hassle? Will it adversely affect my credit rating? Can I know my credit limit before I apply so that I can see whether or not I can transfer a substantial amount?

Hi Jeff,

Thanks for reading, and thanks for your question. Congrats on deciding to get out of that debt so soon…I wish you all the best in getting it done.

I don’t know the interest rates you’re currently paying, but I’m going to guess the average is around 14.9% — maybe more. Since you have 6 months before school, that means it will take six monthly payments of $958. That’s a big chunk of cash each month, but if you can do it, getting debt-free is the best way you can possibly use that money. Now onto your question: Will a 0% balance transfer offer or two help? Continued

Even as the prime interest rate tumbles, Business Week reports that Bank of America is jacking up its credit card interest rates. Bank of America recently notified millions of credit card customers that their interest rates would be going up –to as high as 28% – for no apparent reason. If you carry a Bank of America credit card, it might be high time to find a new credit card.

Credit card companies are notorious for finding any excuse to raise customer interest rates – even customers who pay on time, if their overall credit score declines for any reason. But this time, Bank of America doesn’t even have one of those reasons. Apparently they just need the money.

This letter from Bank of America (.pdf) to an anonymous Visa card holder (thankfully not me!) explains how their interest rate is being raised to 28%. Yes, 28%. Continued

Creditors have a secret they will do anything to protect. This secret — kept in Manhattan penthouses by old cigar-smoking white men — makes banks filthy, filthy rich. This secret allows the rich to rob from the poor. Despite its limitless power, the secret is hidden in plain sight. You may know the secret already; though you may not know just how rich it is making your creditors (and how poor it is making you).

It is also easy to forget the secret, or to dismiss it. You may have learned it along time ago, vowed to take action and then, months later, forgotten all about your resolve to stop your creditors from using the secret against you. So what is the secret? Continued

Next time you want to buy something and you can’t pay cash, ask yourself: “Can I pay for this in full within three years?” I call it the three year rule, and if follow it, you will never find yourself overburdened by debt. Continued