Dear Dave,
I�ve got about $3,000 in credit card debt. Would it be a good idea to transfer the balance from my credit card to another one that has a much lower interest rate?
Tammi
Dear Tammi,
Lots of people who find themselves in your shoes make the switch to low-interest rate credit cards. A lower interest rate will help you save a little money in the short-term, but the drawback is it can also make you feel like you�ve addressed your problem with debt when you really haven�t. You�ve got to change the behavior and the mindset that put you in that situation in the first place. Besides, most low-interest, or no-interest, credit card offers are only good for a short period of time. There�s always a catch!
I discovered long ago that personal finance is only about 20 percent head knowledge and 80 percent behavior. Emotion is a key element to getting out of debt and staying out of debt. You�ve got to get really mad at debt, the impact it has on your financial life, and attack it with a vengeance. Think about how many times debt has been a negative influence on your life. My guess is there were many occasions in the past when you could have done great stuff�I�m talking about meaningful, important things�if you hadn�t had to send a bunch of money to those bozos at the credit card company every month. I want you to really think about it.
How about this? First, cut up your credit card and close the account. Then, sell some stuff and take a part-time job nights or weekends for just a little while. You could wipe out all your debt in less than a year by doing that and starting to live on a strict, written, monthly budget.
If you don�t get mad about it and take a stand against debt, and become determined you�re never going to fall into that trap again, you�re liable to find yourself back in the same situation or worse!
�Dave
