The Pitfalls
If you are thinking of getting a 0% APR Credit Card, then stop - there are some pitfalls.
0% APR Credit Cards can:
- Lull you into a false sense of security, thinking that you have solved your financial problems when, in reality, you have simply postponed the day of reckoning
- Encourage you to spend, when you should be saving
- Make you think that your current spending level is OK, but you need to be making cutbacks
- Create an expensive problem for you in the future, when the normal interest rate kicks in
They can be useful, but...
Any financial decision needs to be supported by good financial planning. Before you make any decisions, you should produce a personal budget and/or cash flow forecast so that you are on top of your debt - see "producing a budget" on our debt page.