♥Jen♥
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Yes it makes no sense, you just transferred it over to another card, and you still have a huge debt. We paid ours off last year and cut them all up, no more credit cards, the interest is ridiculous! |
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nickipettis
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it isn't stupid if the second card has a much lower interest rate. |
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BossLady
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I wouldn't call them stupid...
But sometimes you have to do what you have to do.
~you might not know what its like in their shoes.
~Try not to judge. |
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minnehaha
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first of all, this is not paying off credit cards, they are just transferring their balances and owe the same amount plus the balance transfer fee. If they do it to consolidate high-interest cards into a low-interest card to pay off their debt, then no, they aren't stupid. If they move it to just free up the credit line on the card, then yes, it's stupid. |
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Riss
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No its not stupid if you know how to do it right and your not in massive debt. Trasfering balances is smart. If you trasnfer 500 that has a 39% apr to a card that has 3.5% apr That's 30% less interest on that 500 dollars! sounds smart to me! |
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Channel Islands Fox
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This is not necessarily a bad idea, so long as the credit card they're transferring to has a lower interest rate and they either close or stop using the other card(s). Here's an example:
Often times credit card issuers will offer low interest incentives for transferring balances. Let's suppose someone has $5000 on one card with an interest rate of 15%, and $5000 on another with an interest rate of 21%, for a total of $10,000. Let's say this person gets an offer to transfer these balances on a new card, which will charge him 0% interest for the first 6 months, and 12% after that.
If this person transfers both balances to his new card, he'll still owe the same amount, $10,000 total, except at a lower interest rate (no interest for several months in this example). This way, more of the credit card payment will go toward the balance, rather than lining the pockets of the banks in the form of interest.
If someone does this in a real effort to get out of debt by paying this new card on time, paying as much as they can afford per month (much more than the minimum payment!), and (important!) stop making new charges to the cards, they'll be well on their way to getting out of debt.
If someone just transfers their balances to a new card just so they can "free up" the credit lines on their other cards to charge more... then yes, they are stupid and will only put themselves further in debt. |
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kelannde
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Depends - if they pay off one credit card with another one that has a lower interest rate, they are actually saving money. It's not as if they then owe the amount on both cards.
Many times, new credit cards have lower interest rates, or even "0%"
interest for a certain time. Transferring your balance to the lower rate card will actually save you money. |
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South Loop Social Light
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I don't think anyone that is actively working towards minimizing their debt is "stupid". Someone that continues to charge, spend, and open new credit cards is someone that has bad money management skills. At the end of the day everyone has a different lifestyle and has to find a way to pay their bills and pay off their credit cards that works for them. |
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THATGUY
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Just having a credit card is stupid. it means you are living above your means. I make 35,000 a year. I dont have a credit card. I bought my truck, cash, my motor cycle cash, my 50 inch hd tv, cash, computer cash. Interest is set up to screw you over, and it means you do not own it, until u pay off the note. My advice is to never ever ever get a card
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zqert988
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Not a good choice at all. We had to file for bankruptcy because of that exact thing years ago to the tune of 40,000.
Don't even think about paying one card off with another. |
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shadowess
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'Do you think that people who think they pay off credit cards with another card is a stupid' I think that's stupid considering it seems to be lacking some common grammar knowledge. |
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FTEE
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It all depends on the interest rate of the second card and the terms and conditions. Doing this can also give you a short time to reorganize your finances before the payment is due on your second card. I don't see how it could put you further into debt. |
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LR
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It depends. I know someone who kept rolling over his credit card to another one every time they had a big reduction in interest for transfers.
He paid very little interest and eventually paid the whole thing off. Most people couldn't do that. Of course, it may be more difficult to do since I understand credit card companies are tightening things up. |
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pjkondorpoduszlo
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What is stupider, to pay a late fee on one credit card or pay a normal rate on another card? |
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Jennifer L
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not if the other card has a lower interst rate and they dont' use the card they transferred!! |
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SupFooStyle
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Not always. If one has a lower interest rate, then it is actually a good idea. |
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★milk day☆
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they are not stupid people, they just have poor financial management skills.
[edit] yes, its still debt but youre neglecting to awknowledge that credit cards carry interest rates which you also pay for. if you are transferring your debt from a higher interest card to a card with a lower interest, youre paying less interest in the end. |
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oldhag
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Yes, it may be stupid but for most of those people it is desperation. You have to realize everyone wants the American dream. But when you have people working their butts off for minimum wage and people earning $75 an hour, you have an unfair world. Why do you think someone else's kids deserve better than yours. It is an unfair world and we have criminals running it. If only there was someone honest to make everything right. But we don't have that and so people do what they feel is best and they get screwed and loose their jobs and so they pay off one credit card with another trying to stay afloat. Unfortunately it dosn't work. |
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ahmard_williams73
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you cant do that , you can only pay a credit card with only cash not credit, if you could no it wouldnt be stupid |
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Wuviewoo
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It is not stupid if the card they transfer to has a lower interest rate and they don't plan on using the old card anymore because they would save money by accruing less interest and be able to pay off the card faster but it is stupid if they just go and max out the old card again then they're just waisting time and getting into more debt. |
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Metal Princess Suspended!!!!
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When I have a chance to pay off a 2,000 dollar credit debt that has 23.9% interest rate, with a card that is offering me an 13.9, you better believe that I'm transferring my card to the cheaper interest rate. This is what we call smart economics. You are saving money rather than losing. |
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ChantelleC
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Personally I think it would be stupid to pay one credit card off with another one, because you are just creating more debt! I say if you must use a credit card then use within your means, make sure that you are able to pay it off within a reasonable time line, or else you will be stuck paying all the interest, which in most cases, is more then what you would have originally payed for your purchase to begin with!
Just my opinion though :) |
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*~*GirLy*~*
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The lady that said its not stupid if the second one has a lower rate is right. But if someone just does it to get it off the other card is crazy, and they dont need to have credit cards.. |
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what?
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how would that put them in bigger debt?
if they're transferring the debt to a card with a lower interest rate, that's just smart. |
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TJ
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yes! |
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sabrina b
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yah kinda lol |
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Frecu46
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actually, if you have a high interest credit card balance and transfer it to a lower interest card, you can save a few bucks and add some points to your credit score in the process, providing you are disciplined enough not to add to the balance |
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Aaron S
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Yes, it is stupid. |
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angel 12/18
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yeah i think is stupid |
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Mrs. I Wish I could meet Nick J.
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ummm... I am 13 and know the answer to this one! that is sooo dumb! The credit card company shouldn't let them do that! lol but... ya that is stupid! |
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Bobby S
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did I solve it right? |
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