Ask The Expert: “Is it Better to Manage a 0% Card or a Low-Interest Card?”

A reader asks is consolidating with a 0% interest card better or worse than consolidating with a low interest rate card? And the answer to this question on whether or not you should get a low interest rate card or a zero interest rate card really depends on your ability to pay it back in time If you can pay back the 0% rate card before the promotional period ends that's great and to determine this what you do is you take the amount you're going to finance divide it by 11 and then that's the amount you have to pay every month to pay off the debt before the promo period is up

Oftentimes expenses and surprises happen during the year and that'll throw off your budget so if you've budgeted in to pay it off a month early you're safe Now if you cannot afford to pay that amount every month to pay off the debt, then look at the lower interest rate that has a longer period of time before it expires a lot of those offers are 18 months to 24 months Take that offer if you need more time to pay off the debt