Offering a credit card to pay off debt

[Sweetvtmom]

I have a few credit cards that are delinquent from years ago. I received a letter in the mail offering me a deal.

This company will transfer my amount that I owe to another credit card--after making so many payments within a year, they will forgive part of the debt. Under the program I can qualify to receive a no annual fee, unsecured Mastercard with 0% APR on the initial transferred balance.

Is this a good way to pay off a debt? Or if I accept this offer--am I just setting myself up for another credit problem?

[elvenrunelord]

You can qualify, this does not mean you will qualify. Sounds like they will do anything to get money from you. lol

[giay]

Its just a way for the credit card company to still extract some payments from you. So it depends if you're still willing to pay, that is, based on your financial capability. Otherwise, doing so will enforce you to make payments at specified time frame. Think over if it will be difficult on your part.

[Ms_Margaret]

Hi there,

I agree with the above posts, the company is simply finding out some ways to get out some money from your pocket. You have to be sure that you will benefit from the offer being given to you as compared to your current position.

[Ms_Margaret]

Originally Posted by darryl

The quickest way out of debt is to stop incurring more of it while simultaneously paying off the loans you already have as aggressively as possible. While this may seem tough to do, you can use some strategies to help you out. Debt consolidation or refinancing may be solutions in some cases (but beware how this may affect your credit score), while a few people I know (including myself) have addressed their debt successfully by using balance transfer credit cards.

I agree with Darryl here. It would be much better to pay off the debt first and dont get any further into traps. You can also consolidate your debt with a Debt consolidating company by either lowering your interest rate or lowering your monthly payments.