Oh, the good ol’ days. You might remember the days of old when life was simple, credit wasn’t feared like it is today, and if you found yourself in over your head you could move your credit card balance to a card that offered a 0% introductory rate. Then, when the rate was about to expire, you moved it again. Balance transfer offers were plentiful.
It was a great plan that could be used over and over but one thing that never disappeared during the card hopping process was the actual debt and the card companies knew that. If a person had charged up a large credit card balance, why would they suddenly change their habits after they changed cards? Sure, just like we make New year’s Resolutions to lose weight, when we’re given 12 months to pay off our credit card without any interest, we make the resolution to pay it off but the card companies knew that in 12 months, you would likely still hold a balance and they could start making money off of you.
And that money came in the form of some hefty late fees, a high interest rate that was raised even higher, and over the limit fees. They didn’t lose any money by offering you a 0% interest rate for 12 months. They had you right where they wanted you because they knew that most people would not change their spending habits.
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