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SALT LAKE CITY – Being in debt is stressful enough, let alone in times of rising inflation. But experts say one of the most powerful tools for managing debt is not used by those in debt due to a common misconception.
Balance transfer allows you to move your debt from one account to another. So many balance transfer credit cards allow you to add your existing debt to a new credit card at 0% interest for 15, 18 and 21 months.
“This is one of the best weapons in the fight against credit card debt,” said Matt Schultz, chief credit analyst at LendingTree.
Schulz shared some surprising data with KSL Investigators. His 80% of Americans believe that all interest charges will come if the transferred balance is not paid in full before the 0% introductory period ends. It’s a myth, said Schultz.
“It’s pretty shocking how many people have this misconception,” he said.
Schulz explained that many people who would benefit from such cards fear using them.
“It’s definitely not a jailbreak-free card. You still have to pay that balance,” he said. can be dramatically reduced, so that’s a really good thing.”
Another misconception is that opening a new credit card lowers your credit score, but in reality, as your debt ratio declines, your credit score actually goes up more than it gets worse, according to Schultz. It means there is a possibility.
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Matt GeffertMatt Gephardt has been in TV news for over 20 years and has been a reporter since 2010. He is currently a consumer research reporter for KSL TV. Follow Matt on Twitter at @KSLmatt and email him at matt@ksl.com.
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