Credit Card “Deals” That Aren’t

Despite that more and more people are facing financial crisis during this economic downturn, and despite that many people are struggling to relieve their debt, credit card companies are still doing quite a lot of business. No matter what the circumstances, they know how to line their wallets, regardless of the effect on you and your wallet. For this reason, they pour their efforts and money into coming up with new and tempting offers to catch consumers of guard. If you're currently struggling with debt, these offers can do you more harm than good, and should be avoided at all costs. Here is a quick rundown of the worst offenders.

Get A Store Card And Save 10% On Everything You Buy Today! You're eyeing that new computer or TV you've wanted for a while now, and with this credit card it would only cost $40 a month! You think how wonderful it would be to have the item you're dreaming of, only paying a small, manageable amount. But if something happens and you're late on your payments, you'll not only be charged a huge fee for it, you'll also see a drop in your credit score. And, if you only make the minimum payments, you'll end up paying more than it's worth in interest.

Interest Free for Six Months! Although this can look like a good deal on the surface (get what you want now, and pay only what its worth in small bites!), there's no telling how high the interest rate will be after the initial six month period is over. What could you possibly buy now that would be worth a spike in the interest rate later? If it takes you more than six months to pay off the item you've purchased, you could wind up paying on the interest even after you've stopped using it or have thrown it away.

Low-Interest Balance Transfers for Six Months! This is especially tempting when you're deep in debt, looking for a place with low interest to stash it while you pay; you think that you can transfer the amounts from your other cards and no pay interest for six months.

If you know for certain that you can pay the balance in full in six months and that you won't run up any additional debt, this can be a good thing. But it's also very dangerous. Just like with the last "deal," if the card isn't empty in six months, you'll face skyrocketing rates that can max out this card as well.

If you can apply for a credit card, then you're capable of making your own decisions and knowing what's right for you. Remember: credit cards are a business, and the people who offer them do not want your friendship. They want your money. If you're looking for debt relief, the best solution is just to keep paying as much as possible until you've cleared all your balances, and to not incur more debt while you're paying off what you owe. Although it can be difficult while you're paying it, the relief you'll feel when you're debt-free will be worth it.