CC shuffling? Can someone explain this

iVillage Member
Registered: 03-26-2003
CC shuffling? Can someone explain this
2
Mon, 08-22-2005 - 9:46am

to me?

Photobucket
iVillage Member
Registered: 08-19-2003
Mon, 08-22-2005 - 10:29am

CC#1 $8k balance at 29% interest.
Cc#2 $0 balance but mails you check for 0% for 6 months

Write check from cc # 2 to pay off cc #1. Now pay as much as you can to CC#2. Continue to surf balances until you are debt free.

Shannon


Pregnancy%20ticker
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Mon, 08-22-2005 - 11:17am

Shuffling is when you move a balance to another credit card that has a zero balance, and you *never, ever, ever* charge anything to that cc while you are paying it off.


Many cc companies offer you lower interest deals if you surf a balance over to them, but what they don't tell you (in the bold print anyway - they mention it pretty clearly in the fine print) is that they will apply 100% of your payment to the lower interest balance, and if you charge anything, anything at all on that card, it will sit on the card, month after month, compounding interest at a higher interest rate, and not one penny of your payment will go to that balance until your lower interest balance is paid in full.


Shuffling/Surfing can be a great way to lower interest while you're paying off debt, but it can really backfire if you transfer a balance to a card that has an existing balance.

All my best,
Danni