Paying Credit Card Debt with Other Cards

Paying credit card debt with other cards is an option to try to manage your debts. However, it may not be a smart or fiscally responsible one.  Generally, paying credit card debt with other cards is known as debt consolidation loans. There are various types of debt consolidation loans which doesn’t involve paying credit card debt with other cards. For example, you may take a personal or home equity loan where a lender agrees to pay all your credit card debt. You then pay the lender—with interest—the amount of money they paid the credit card companies. Or you can work with a credit counselor to budget your way out of credit card debt.

Transferring Credit Card Debt o to Other Credit Cards Is a Debt Management Option

The way transferring credit card debt works is that you sign up for a new credit card. Then you transfer all or a portion of credit card debt you have onto the new credit card. Often, the credit card has a teaser or promotional interest rates. For instance, the credit card company may over you zero percent interest on the credit card debt you transfer onto the new credit card. These rates usually last a specific period of time like six to 12 months.

There Are Benefits to Transferring Credit Card Debt

Granted, there are plenty of advantages to paying credit card debt with other cards. For example, you can eliminate the high interest rates and late fees you have on your credit cards. Another advantage is that you’ll reduce your list creditors to pay each month. If you can pay off the transferred credit card debt before the promotional rate is over, then you will save money.

Transferring Credit Card Debt Has It’s Disadvantages

Paying credit card debt with other cards can become a nightmare if you don’t make the required payments on time. Let’s say you miss a monthly payment, are late or don’t pay the minimum payment. Thus, the introductory or teaser rate disappears. Therefore, your rate may jump as high as 20 or 29 percent, according to Money Smart Life. In addition, the new credit card can have addition costs like an annual fee.

Seek Legal Assistance Regarding Credit Card Debt

A lawyer can help you determine the best way to deal with credit card debt. If the debt consolidation isn’t the best option, then the lawyer may suggest other debt management options.