|
|
 |
|
|
|
register |
bbs |
search |
rss |
faq |
about
|
|
|
meet up |
add to del.icio.us |
digg it
|
|
|
|
On low- interest credit card promotions
Creators Syndicate
FIGHT BACK! BY DAVID HOROWITZ
If you're one of those fortunate people with a solid- gold
credit rating, you probably have more than one credit card. And
chances are, you regularly receive flyers in the mail from other
credit-card issuers that want you to carry their cards as well. If you
simply throw those flyers away like junk mail, you may be missing an
opportunity to get the most credit for the least money.
Right now, there is intense competitive pressure build- ing in
the credit-card industry. In order to promote their cards, banks and
other lenders are offering special promo- tional rates to attract new
customers. That's why it pays to read those flyers in the mail.
Typically, these cards will of-fer an interest rate that is far below
current rates for a limited period, usually six months to a year.
After that, the interest jumps up to competitive rates. Many will
waive the annual membership fee for the first year or offer the card
free for a minimum number of purchases per year on the card.
Often, that low rate is available only if you transfer your
balance owing from another card to the new one. That's fine. Do it.
You may cut your interest by half or more. Just remember, that low
promotional rate won't last forever. You should plan to have that
balance paid off by the time the special rate expires. That means
keeping your purchases under control and your monthly payments high
enough to eliminate your balance owing. If you pay only the minimum
payment due each month, you will never pay it off.
Something else to watch out for are those "checks" that come
with some credit-card accounts. Each check you write against your
credit-card account is a cash advance that is added to your balance
owing. And there is usually a hefty fee for using them. Here again,
some card companies will waive that fee if the check is used to pay
off another card. But that's usually a limited-time offer.
The last time I wrote a column on this subject, someone asked
me if I was suggesting using one credit card to pay off another. No --
that's a danger-ous trap! The whole idea is to pay off your
credit-card balance at the best possible rate -- and not just shift
that debt around from one lender to another. Doing that will cost you
big bucks in the long run.
Another source of cheap credit is the Same As Cash in-
stallment purchase. We saw a lot of these during the recent Labor Day
sales. Retailers offered extended terms on major purchases with no
payments due and no interest for six, 12 and even 18 months. That's
fine, as long as you can actually pay off that debt in full by the
deadline. If you don't, then you will be charged all that back
interest from the date of purchase -- and at very high rates. If you
can't pay it off in cash by that time, then shop around for a
lower-interest consumer loan. You'll get a better rate than the
retailer's lender is offering.
Properly managed, credit is a useful and valuable re- source.
Improperly managed, it can be a crushing financial burden. The secret
is in knowing how much you owe on which accounts and how much you're
paying on the outstanding balance. That way, when a better deal comes
along, you can take advantage of it to lower your credit costs.
If you have any questions or comments, please write to David
Horowitz in the Consumer Forum+ (go FIGHTBACK). COPYRIGHT 1994 CREATORS
SYNDICATE, INC.
|
|
|
To the best of our knowledge, the text on this page may be freely reproduced and distributed.
If you have any questions about this, please check out our Copyright Policy.
totse.com certificate signatures
|
|
|
About | Advertise | Bad Ideas | Community | Contact Us | Copyright Policy | Drugs | Ego | Erotica
FAQ | Fringe | Link to totse.com | Search | Society | Submissions | Technology
|
|
|
|
|
|
