We have all seen them: a “special introductory offer” where you pay a low interest rate if you sign up for a new credit card, and transfer a balance from another credit card. Today’s tip: Beware of low introductory rates.
If you are paying a high rate, it may appear to make sense to switch to a lower rate. If you then pay off both cards, that’s a good strategy. The problem, of course, is that once you have a new card you will be tempted to use it, and you end up owing balances on two cards, instead of one.
Don’t get more credit cards, and don’t fall for the low introductory rate trap.