I have been cautioned against taking a "line of credit" to pay off high interest credit card balances. Instead, I have been encouraged to keep using the 0% interest credit card offers for as long as it is offered at zero %. These cards are a dime of dozen these days.
As with anything in life, it is what you don't know that hurts you. If I embark in doing the card hopping strategy, I don't know what the long term consequences are in using these 0% offers. So, I kindly ask you the following questions:
1. Will it hurt my credit rating? Right now I have a very good credit score. I pay all my bills on time. It is the finance charges that are killing me.
2. Should I close the expiring 0% card as I open the new 0% card. At the end of 5 years I don't want to have a trail of credit cards that are still open balance. Or should I?
The time you're wasting bouncing the balances around you could have paid off the low balances first. Yes, most experts agree that it might be wiser to pay high interest off first, but Dave Ramsey says go for the psychological gains by paying off the lowest amounts first. Get a few victories under your belt, and watch how quick you get your credit cards paid off! Check out his book "Financial Freedom" and put his recommendations into his plan called "baby steps" this stuff is great. I picked up the book on ebay for $12.00 He has been Oprah and really drives home how to become debt free, I am not there, but I am not to far off! Good Luck kid!