The problem to Apply for Credit Card is that it can be too good a deal, and you can get into further and further debts, until you can’t get any new credit cards with 0 balance transfers and low apr. As a result, you’ll have to start paying a high rate for your credit card, instead of the low rate you’ve been paying, and also pay lots of money to transfer your balance.

This happened to me once. I had lost my job while paying for my house, and was temping at a low end service industry job. Normally, it would have been enough to live on, but with my mortgage payments, I was racking up debt. Instead of dealing with it, I used low apr cards with 0 balance transfers to cover my high interest rate debt. This was a good idea for the first few months, but soon I began racking up debt faster than I would have thought possible.

This entry was posted on Monday, August 25th, 2008 at 8:19 pm and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.