Credit Card Surfing

Credit card surfing to make your interest go down doesn't get the balances down like a big, hairy principal payment.

QUESTION: Michael has a question for Dave about credit card surfing. Dave says it’s not bad to lower your interest rate, but he says to not fool it with thinking you did something.

ANSWER: You didn’t make it go away. None of these people are paying you. If they don’t record it right or lose the payment, they’ll raise your interest rate. With all this activity, you feel like you’re getting traction but you’re not. What gets the balances down is big, hairy principal payments. Moving the money around like that is only 3% of the issue; the other 97% is getting ticked off at this debt and getting rid of it. Address the core issue of overspending.