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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.
There’s a great “get out of debt” tool that’s barely used because people fear it, according to new data shared with.@KSL survey. i will take it apart@KSL5TVNews at 6pm. pic.twitter.com/gO1UCJ5rpA
— Matt Gephardt KSL-TV (@KSLGephardt) May 2, 2022
LendingTree Chief Credit Analyst Matt Schulz said:
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 quite 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 card. You still have to pay that balance,” he said. It means we can reduce it dramatically. So that’s really good.”
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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