Should I Transfer My Credit Card Balance To A 0% Interest Account? 

WOW! Interest rates on credit cards were at 6-15% back then... now, they're around 25%-29%.

Ramsey is right here. If you do the transfer you better be super aggressive on paying off the debt as fast as you can and not create any new debt which is always the danger. Change the behavior and kill this enemy called debt. I'm winning now because ive changed my behavior. Thank you Lord for wisdom.

I love it. “I moved my CC debt to a 0% CC and saved what would have been $1200 in interest over the next year. With all that hard work behind me, I can take a break from this whole paying off debt thing for awhile. In fact, I think I’m gonna go celebrate my victory at Ruth Chris tonight. And, since I don’t have to worry about some nasty ole interest for the next year, my $400 minimum payments will really start crushing my $22K balance! Debt freedom is just around the corner!”

Interest IS the problem!! My interest charge is 450 bucks outta the grand I drop in my card. I transferred balance over to a zero interest card and paid it off in 13 months! How can you say the 450 monthly interest charge is not the issue ?? If I had to pay the interest it woulda took me 10.03 years to pay it off !!!

Yes! Been there, done that several times. Dave mentions it's a mental issue we have when getting rid of debt. We learn nothing by consolidating to a lower interest credit card. It might be temporary, but if you haven't changed the way you spend money, you will only be right back where you started several years later and digging an even deeper hole. This has been my experience! Working to change this now! Baby step 2!!

In my situation, going from an interest card to a 0 % for 21 months for example, that card would be paid off so much faster. Right now I am paying interest and a portion of my card off, and I rather pay the portion than the interest because this damn interest is not doing me any favors right now.

"The danger is feeling like you did something" so true lol

Move the money to the 0% balance card and stick to the plan and pay it off.. and cut up your card.. simple... but move it though..

It works......you can borrow your way out of debt.

I’ve done this for years, especially given what interest rates run these days (~30%). The key is what Dave mentioned. You MUST pay this off during the terms of the transfer.

"Don't knick debt, CUT IT!" Very powerful.

One thing to remember is that you might not get approved for the entire amount of your debt. This guy needs to get approved at the start for a $12,000 credit limit. So you might just end up opening another credit card for nothing.

If you can't pay off your debts within the zero interest period, at the very least, get your debt below 30% of your available credit. If you have a balance transfer account available, move your interest charging cards to it and do the math. That

Yes the behavior is THE MAIN PROBLEM but having a small bone of $1200 in savings is still okay to do if you attack the behavior. For me- my interest was near $3000 on $5500 in debt. Best believe I transferred it to a 21 month no interest card.

My coworker says for years he kept moving his balance to various cc companies who gave him no interest, he would do so before the interest would be added n save a ton!

I recently posted how I used $25k in balance transfers to pay down my mortgage. I'm almost done paying them and can't wait to redo the process.

Having a plan is the most important part.

His advice 7 years ago is that 10% of the problem is interest rates. Now given the high credit card interest rates, it increased. Interest rates on credit cards are now 20% of the problem. So do the balance transfer and pay it off before they raise the rates back up.

Just did this a few minutes ago, thanks for the advice... I'll pay it off in under 18 months...it's only $2800

4 years later and its still relevant today seeking the advice i need. thanks dave and great question Jason im in your position now, move the balance still gazelle

But you'll feel like you did something at the end when you paid it off if you stuck to the plan. But it's important to never fall back on the same old patterns tho

You have to be careful though some cards have a clause that if you're not paid off after 12-18 months they add a balloon interest charge.

Yes you should. This is obvious.

I'm leery to pay it all off. I may keep a small balance, just to remind me not to do it again. How quickly I forget, yet it takes years to pay it off..lol.

Who’s watching in 2020 and believe that he’s still paying for that? After he said to call the credit-card company to know what would be the interested rate after 18 months I was like 🤦🏻‍♂️ hahaha

I would love to see Dave author a book on Family Business Succession Planning.

Couldn't get approved for a balance transfer due to a recent loan so the only option is to aggressively pay down the balance. Wish me luck!

So funny $1200 less is less they have to pay on the debt. Also the Zero percent as long as they can pay this off in the zero percent period they would be find. card jumping has got me almost debt free. That was bad advice. Never pay a bank interest if you can avoid it. His snowball effect is great as it has little victories so if you can the interest and continue to double up payments its like a interest free layaway to clear debt. Zero percent credit cards even with the small fee is a game changer to get out of debt. Not all debt is bad and if you move your debt to the better side its always good.

TY for your help and advice, i just did a balance transfer and i am CHANGING MY WAYS! :)

He should also check the new credit card's interest rate after the 0% APR period. If he's not as diligent as he's planning to be in paying this off quickly, he may end up consolidating his debt into a credit card with 15-30% interest rate after the promotional period.

I think Dave shifted his advice over the years to avoid consolidating debt because it disrupts the debt snowball. That is because the debt snowball relies on small debts being settled quickly to increase motivation

If his only other debt is an $11,000 car loan then his four credit cards are going to be the first thing paid in his debt snowball, so they should all be gone within 6 months and half gone within three, which means that the interest saved will only be about $350. If the 15% card is one of the earliest ones paid the interest saved will be even smaller. Not worth the hassle just start wailing on them.

Paying off $22k on $75k income is crazy let’s not kid ourselves here

there is always a fee to transfer balances too so its not a magical get out of jail free card. just attack the debt and live within your means!!!!

Love Dave's "tough on debt" takes!!

That $1200 a year looking more like $2400 a year now, plus with my $45-50k annual, I think I'm getting a balance transfer 😭

Him asking what the interest rate will be AFTER the 18 month 0% interest period scares me & makes me think he isn’t serious about getting the debt paid off. The interest rate after 18 months shouldn’t matter because your debt should be paid off way before then, that’s the point of the 0% interest for 18 months transfer. Dave is right, it’s not a math problem it’s a poor spending habit problem.

A 0 interest balance transfer is indeed helpful but I absolutely agree that the danger is in getting "comfortable" and not paying off the new card either. Wealthy individuals recycling asset debts like (refinancing mortgages, etc) among other assets for taxes and growth is a totally different story, credit card debts are usually living beyond means or having sudden emergencies, fair enough - regardless of the case, it's the lack of financial strategy that is the primary issue if the debt is hurting your finances and assets. The credit card isn't generally tied to an asset that is growing way way beyond the value of the debt when one is having to make payments and doesn't have a single sell off option of an associated asset with profit beyond the debt and interest - though it is possible a card could have been used carefully for an asset that grew rapidly and payments kept interest at bay (financial strategy was strong and fanatical from the start though).

you sir is telling the truth ....... " the danger things here IS THAT YOU FELL LIKE YOU DID SOMETHING " but the end of the day you still own and need to pay it off...

I would like to call dave ramsey, but I dont know how. Its kind of important.

I think I'm missing something.... There is a credit card balance of 15% .... Or a temporary loan at 0% (plus a 3-5% fee). Why would you not transfer it, then cut up the card, and call them to reduce the credit limit to the amount transferred? 15% is crazy.

Yeah but gotta check the balance transfer fee It's a % of the balance transfer.

What is "0% interest"? Did he mean "0% interest with 3% balance transfer fee"? (I haven't seen too many 0% interest offers that don't have a balance transfer fee.)

Very good advice

I assumed everyone was being attacked after watching this 😂 especially Jason. He was the target, not the interest.

In this time Cutting card is not a solution for not using card. We have cards in our phones ..... lol

Do the transfer

Great advise 👏

Great advice 😅😅😅😅😅❤

Any recomendations for a credit card to do a balance transfer for someone with bad credit?

Dave you failed to educate your caller about how a credit card actually works and that it is an instrument granting him access to the credits that are already in his cestui que trust. I've explained this in detail in a video I just uploaded on my channel.

Most balance transfers charge like 4% so you're not saving $1,200 you're saving closer to $700. Still not horrible, but not 0%

ramsey stop judging people yes people get into debt. later people realize what they did and are seeking solutions not someone to put them more down then what they are. just get to the point without judging

Talking numbers, you should do this

Thanks so much

What if both of my cards are at 29% interest rate and i owe a little over $7,000 would that amount be approved and if so would it be better to transfer to a 0% apr for 18 billing cycles credit card ? And if so would it be more affortable? Im new to all this!

How does how balance transfer's interest work? I understand you are moving money from one account to another usually there is a 3% fee. Most card has a 0% interest only on new purchase not balance transfer and you still do need to pay the minimal payment but what would the interest be? 0% or the term listed when you did the balance transfer?

Dave makes a very good point !! This guys just moving it from one place to another but the debt is still there and the debt needs to be paid off !! Moving it around doesn’t make the balance any less !! Duh 🙄!! He needs to put money into it !! Duh 🙄!!

It appears that the balance transfer fee of 3% - 5% would kill you even if the APR is 0% in 12 months. Am I right?

Don't borrow money. Follow the mantra people of if you can't pay cash then you cannot afford it!

do not do the interest free its VERY risky.

He will only save $1200 if he paid it of after one year in one big payment, if he pays it off gradually he'll save $600 since his average debt will be half

Dave wants to keep you in debt.

is it worth it if i do a balnce transfer with a bill of 2800 on one card and 5500 on another? both have pretty high interest rates

what if your are not eligible for a zero percent offer? what do you do when the cc companies wont offer your any less apr other than 24%.

Just subscribed

Can I transfer like a couple thousand at a time on to one card or does it have to he all or nothing? The low interest card has a smaller limit than the higher interest card. I figure I can pay it off within the 18 months if I do it this way.

The interest rate is my problem

*JESUS CHRIST LOVES YOU AND CARES FOR YOU HAVE A GOOD DAY EVERYONE*

Cut the other cards so u dont start using them again. I am a creature of habit and that blue card is my go to.. lol

balance transfer fee is a killer

Why didn't teamsters in financial debt take out Jimmy hoffa CREDITCARDS???

Blew his mind when Dave said you can pay off 22k in a year right?

Is it true if you do a balance transfer, the card that gets zero out balance age of the account restarts over? Plus it lowers your credit score?

Does doing a Credit Balance Transfer result in closed accounts for the credit card being transferred?

I never will understand how such an intelligent man like Dave can trash credit cards the way he does for every single case. I mean I understand credit cards can be like cheetahs and they can attack you in groups take their prey down. So general population has to be gazelle intense to avoid them because gazelles have no business being anywhere near cheetahs. But my dad is the hunter you send to slaughter those cheetahs. And he has trained us the same. Yet I bet he will still say its not wise to use them. Makes no sense.

What you are doing operating a motorized vehicle without pay attention to your surroundings, is not only dangerous but is teaching others its ok to sit in or on a 5000 lb heap of plastic steel and possibly blood and guts.....So do not let me see you do that any longer sir. Shalom🕎

heck yeah!! saves mad moneg

double message

Bitconneeeeeeeeeeeeeect!

$1200 dollar saving if you balance transfer, minus fees, it's not worth it!