Credit card debt

Rachel writes in reply to our column about a spend-nothing year. “I was interested because I have Done the same thing. I had run up a credit Card unwisely. I saw an ad on TV saying If I transferred my balances to their bank they would give me 0% interest for a year. So I did. This was not easy but with no spending at all just food on bills. But I did it in less than a year. Very challenging. I will not owe any money to anyone now. I’ve also started a serious savings account. Sometimes I ended up with $1 in my account before my next super came in. Anyone can do this if you mean it. Cheers for anyone who gives it a try.”

Well done Rachel. We think it’s a good idea for those with mounting credit card debt to switch to a zero interest provider with the aim of having it fully repaid within the year.