Moving Credit Card Debt Around Is A Bad Thing ?

No Credit Needed posted that moving money around with zero interest balance transfers is a bad thing as it’s just moving the debt around it isn’t actually paying it off, which is undeniably true.

Howver what he overlooks is that by transferring the debt onto, a zero interest balance transfer card is that you’re reducing the amount of credit card interest you’re paying and therefore are freeing up cash to reduce the debt.

If I had $1000 invested at 0% return, and I could move it somewhere I would get 10% return do you think I would leave it sitting somewhere less productive ? So the reverse is true for my credit card debt.

In may case I think I’m paying around $2-300 a month in interest, If I wasn’t paying interest on my debt I would have an extra $3000 a year to reduce my debt.

Or another scenario I looked at recently is if I took out a consolidation loan @10.99% and used that to pay off my credit cards over 5 years I would save myself $5,000 in interest over the five years.