This is always something that I have heard people do in order to postpone having to pay off their credit card balance. Basically, one would simply transfer their existing credit card balance to a different card just before their due date which gives them more time to pay it off.
This topic came up as someone kept telling me how Citibank has this credit card offer where if you sign up then you can transfer all of your balances to this card for 0% interest and not pay for a year or something along those lines. Does this method actually help people eliminate credit card debt? To me it doesnâ€™t really make sense to do so normally as when you transfer your balance there is usually some kind of fee associated with it and so you are ending up prolonging your debt while increasing it.
With this particular scenario though, Iâ€™m just trying to think from a business point of view where interest rates are where the card companies make money normally and so that makes me wonder if there is more to it as I guess it would kind of make logical sense to do so otherwise if you are currently struggling to pay an existing card that is charging you an arm and a leg in interest every month.
I always pay off my balances all at once, so this type of thing isnâ€™t exactly something that I have done before nor does it excite me. But, for those who want to try it and are in Canada, apparently you can apply for the card at http://www.applynow.citibank.ca and you have to enter in the code â€œG76â€ to get the offer. If you are one of those people that are going to try this route, maybe youâ€™ll have an interesting story to share with us afterwards on whether it helped or not overall.