Why transferring credit card debt to a zero interest card fails

In this article I want to talk to you about why transferring a credit card balance to a zero-interest rate card, often ends up a disaster leaving you worse off than when you started.

Now the good news is, I’m also going to tell you how you can fix that.

So, to get started. I think it’s important to understand the landscape and the environment that we’re working in.

If you consider myself as the lender, and you as the customer, you see my promotion for 12 months interest free om a transfer of credit card balance.

You apply to transfer that balance. I give you the money and I’m not expecting a return on that for 12 months. As long as you pay it back in 12 months, you’re not paying any interest.

However as a lender, I’ve had to raise that money somewhere. Those depositing their money with me expect a return from day one. They’re not happy to wait in the hope of getting a return.

So, I have a 12-month window where I’m now paying someone for the use of their money.

I’m then giving you that money with an expectation of no return.

There is something wrong with this picture.

 It’s about understanding that this is a calculated decision.

You as a customer have every intention of repaying it, that’s why you’ve transferred the balance.

As a credit card provider, there’s a high likelihood I’m probably looking at your track history. I am looking at your previous statements and noticing that the balance isn’t really going anywhere.

Whilst your intention is good, your past history is probably indicating to me that there’s a very good likelihood in 12 months’ time, that balance will still be there.

It’s a calculated decision.

So put that aside, you’ve gone back, you’ve looked at your budget, you’ve worked out that $10,000 equals $833 a month.

You have found somewhere where you can reduce your outgoings by that amount for the next 12 months in order to achieve your goal.

Maybe there’s a payment that you had which has now stopped. Perhaps that’s where you’re looking at the money coming from.

So, you head off with every intention of paying off your debt however 3 – 4 months down the track your plan is railroaded.

The funds that are now available suddenly need he used for something else.

It’s important to understand when this happens, payments made after that often now go against those transactions and not the balance that you transferred.

Remember too that those transactions are incurring interest from the day you make the transaction.

12 months down the track your plan of having no debt has failed.

So, there’s a simple way on how you can fix this. I put together a simple, easy to read guide.

Download the guide and it will take you through some simple steps that can ensure you have got a really easy process to follow. This will help you achieve your goal of no more credit card debt.

Download it and get started. If I can be of any help at any stage contact me, lets chat.

Ending Credit Card Debt


At Moneytrainer we don’t just understand this stuff we give you the tools and resources to fix it.

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