Apply New Credit to Pay Old Credit | Is this working?
Apply New Credit to Pay Old Credit – I have the difficult situation with my debt. This recession is hitting me and now I have to work harder and even use my weekend for the second job. I wonder what should I do with those debt?
Apply for new lines of credit to increase your credit limits. Use this credit to pay all current credit card bills.
Pros: This will work at first. You will be able to continue spending and enjoying your new found credit lines.
Cons: It won’t take long before you run out of the ability to get new credit. Additionally, the interest charged on the debt will overtake your credit limits thereby maxing you out with no ability to pay. It’s a guaranteed losing proposition.
Note: It is smart to avoid being late by using one credit card to pay another. However, the idea of the continuous acquisition of credit to avoid debt is destructive.
Another financial news:
January 20th, 2009
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