Question:

Paying off two credit cards with one?

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I've had two forms of credit card for about a year, a typical credit card and a best buy store credit card. I've been keeping up with my monthly payments and I've stopped actively using both cards. My plan, is to pay them both off and then cancel them.

I've been working at a steady job for a while and I'm pretty positive that I can have them both payed off in the next three months, however, I was considering applying for a new credit card and using it to pay off one at a time.

I feel that this way, yes I'll have three credit cards for a few months, which isn't great, but I can pay off one, cancel it, pay off another, cancel it, and have the one left. Plus, it's 0% APR for 6 months...

I just want to know if this sounds like a viable option, or am I just setting myself up for future debt?

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7 ANSWERS


  1. If you stick with your plan, you will be fine. You will just have to get the third card with enough credit that you can pay off both of the other cards.

    What I would do then, is use the money would would have paid on those and put it all towards the third card. This way, you can reduce the amount that is owed on that third card.

    Also, make sure you do cancel those other two cards, because if you are like some, they will keep those others open, and then use them.

    I think you will actually save yourself some money too, because you won't be paying some of the interest on the other two.

    One concern, the 0% for 6 months, how much is the interest after the 6 months? Put that into consideration, unless you are going to pay off that third card within the 6 months.


  2. If you do this right, it can work.  If you goof, it can be a huge hassle.

    Carefully check the terms of the 0% card - are there hidden fees for transfers?  Is there a minimum or maximum amount to transfer?  What is the rate if you miss the payment deadline?  If you mail your payment, it usually has to be received by a certain date and unscrupulous lenders will say they didn't recceive your payment in time and there is not a lot you can do about it.

    IF you can use the new one to pay off both old ones and NOT use the new one for new purchases, this is not a bad plan.  How much self-discipline do you have?

    Would you save anything by just paying more than the minimum on the two you have until they are paid for?

    Good luck, you sound pretty smart!  Just be aware.

  3. every time you cancel a credit card you hurt your credit your better off to just cut up the card and keep the account open always opening new accounts and closing others is terrible for your credit. getting a 0 percent card and balance transferring your debt over is a good idea though. apply online on a secure site

  4. You aren't setting yourself up, unless you don't have self control and charge a whole lot of stuff after wards.

    Your plan is reasonable as long the new card has a lower interest rate (which you said is 0%).  You may even want to consider transfering the balances of both cards to the 0% card.  That should eliminate all interest for six months and gives you more money to pay them down with.

  5. As long as you are disciplined and don't use the new 0% credit card, this will work.  You can transfer both of your credit card balances to the new 0% card and then pay it off as quickly as possible.

      Congratulations for digging yourself out of the quicksand.

  6. A couple things...Do not cancel the cards just cut them up and toss them.. By closing them out it may bring down your credit score. Plus read the fine print on the new card, alot of times if the balance is not paid after that 6 month mark they will go back and calculate the interest over that period of time and add it to your balance.

  7. Hi,

    I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

    http://twurl.nl/s43ya8

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