I find it amazing how quick a six to eight months period can go by after you have done one of the credit card transfers and you find yourself again looking at incurring interest on what appeared to be a good spend at the time. I wont go over bad or good debt at this time nor what you or I may have spent the money on in the first place as that’s something I have spoken about before. What I will talk about are the decisions we need to make and the human nature which gets in the way of our making the call when we arrive at the end of our transfer terms.
Its that time again?
A fact many of us like to gloss over is that when our credit card transfers come to an end if we haven’t been careful we can fail to pay more off the balance than we actually did. Did you actually take the time to plan out your repayments in advance once the balance period begins so that you can actually make the repayments on time? Face it human nature is to put something off or procrastinate over it until it becomes a big enough problem that we actually take action! (Story of my life during college). Even worse is that we have probably had the money to allocate to the payment but we took a small portion of it for something else. Another bill or perhaps another luxury item or a night out. Is this sounding familiar at all? One of the other tricks with credit card transfers I have learned is to check the fine print. Are you due and accountable for ALL the interest on your credit card transfer if you don’t make have all the balance paid off in time?
I have made the commitment to myself (and to you the readers) to make sure after I transfer money between credit cards (yes it looks like I need to take advantage of another one) to make a plan and stick to it. To document and budget in advance how I am going to make by balance transfer work the best for me. Stay tuned for my post “The post Balance transfer accountability).
The 5 signs your credit card transfers are about to end
So onto the 5 signs I noticed myself in the last 30 days and two statements from my credit card lender;
- The credit card statement arrives and jogs you memory enough that you actually turn the page over to look and see when the interest free period expires
- Your monthly repayments almost start to have a feeling of desperation. You started at $50 a month and now its up to $900!
- The envelope your statement arrives in starts to get heavier with added forms, life insurance offers, credit limit increases and all sorts of marketing material as your credit institution tries to keep your business and you spending on their card. After all no spending = no revenue for them.
- You start to pay attention to the ads in your magazine / newspaper when they talk about balance transfers and you actually stop talking to your significant other when the add comes onto TV showing balance transfer offers from other banks.
- You keep a notepad nearby so you can write down the best offers knowing your not going to make your outstanding balance in time and that the best bet is to probably do another transfer!
So Plan your credit card transfers and Follow it!
I talk about drive, motivation and discipline all the time but like you how often do I actually follow through. How often do I commit to a course of action and move on it. So my challenge in the next fourteen days is to commit to another credit card transfer, shop around for the best deal and make it happen. Once I am approved I need to start from the scratch and submit my repayment plan probably in a post on here so a couple of my readers can hold me accountable!
You may also want to read our previous article on Credit Card Transfers: 5 Signs You have Credit Card Addiction
Don’t forget to share with all those credit card shopping friends you have!
***Photo thanks to HappyHaggis, Shawnzrossi & bionicteaching***