When someone has credit card debt and wants to reduce the amount they are paying on interest, there is always the question of what is the best way to reduce that interest payment. A lot depends on the particular circumstances of that person. One reader asked what is the best move to make for his mom and her two credit cards:
My mom has debts on two credit cards. She’s on a tight budget right now and can’t pay for them. (She has pretty good credit.) I was wondering what strategies she could go about to dealing with this. The obvious idea would be to pay for the entire balances right now but that is something that she can’t do.
I was thinking of doing this: opening up a new credit card, one w/ a 0% APR and transferring the balances onto that account. She’d be able to pay off the balance within a year. Is this OK? Or is there a better, more optimal strategy? (Also if this is a solution, can you please advise me on what cards would be good? I was thinking one of the Citibank cards.)
If you were in a similar situation, what steps your you take and why? Is there a particular credit card that you like in particular for 0% transfer moves?