Using Low-Interest Credit Cards to Pay Down Debt

Don't Sell the Cattle!
by Scott Bilker

Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

Scott,
I am a 53-year-old female with a husband that abuses credit cards. I have sold 2 houses and taken out an equity loan to pay off credit cards. Tell me how to talk to a man and tell him how stupid he is. I have the only retirement account. He has some cattle. I just heard you on the radio today about using credit cards to pay off the debt. Maybe I could convince him of that. Please explain. Thank you very much.
--Cecile

Cecile,

Thanks for writing and for listening to me on the radio!

It's always a smart move to pay off as much debt as possible. Credit cards interest rates are usually at a much greater rate than any other form of debt. I've seen credit card rates as high as 35%!

Now that you've paid off much of the debt with the sale of the two houses and the home equity loan it's time to look at other options. I always talk about making the banks fight for our business and that's what I mean when I say using credit cards to pay off debt.

As you transfer your balances from one bank to another you'll find that all your bankcards will start to offer you better and better deals. These lower rate deals can help you save thousands of dollars but there is one caution. That is to not spend the savings by charging the cards to the limit with new purchases.

Please read my article, Getting better, cheaper credit--right now! You may be able get start getting lower rates right away which will start saving you even more money!

Based on the results of my survey on 7/17/02 of DebtSmart® Readers I would have to guess that you pay the bills. You set the budget. The problem sounds like you're having trouble getting your husband to follow your financial plan.

You can try to change his philosophy about purchases by making him ask himself some questions before buying anything, especially with credit cards! You can read the question I ask myself, and the thinking of other DebtSmart® readers, from the last issue's survey by clicking here.

Here's the best strategy to you can try to curb his spending, simply take away his credit cards. I'm not saying to close all the accounts, just take away the card and give him cash to spend. When he runs out of cash, he runs out of buying power. This may not go over well at first however, it's the best measure attenuate his spending.

Good luck and please let me know what happens!

Regards,
Scott

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