Guilty looking woman shopping at the mall with a credit card

Regardless of how it happens, credit card debt is credit card debt. It doesn’t matter if you let a bunch of small purchases pile up or spend a lot of money at once, you could find yourself in the same place.

One of the primary benefits of a credit card is the ability to make big purchases. For instance, if you want to purchase a $3,000 computer, it’s often easier to do so with a credit card as opposed to cash.

Conversely, this can pose a potential problem. When you gain access to a large amount of credit, you may be more tempted to make big purchases.

While not always the case, big credit card purchases have the potential to lead to a balance transfer. Here’s why: you could soon find yourself buried in debt and unable to pay it down in a reasonable period of time. For this reason, you continue to get hit with a finance charge every month.

Rather than pay interest on your balance, it may make sense to use a balance transfer credit card to your advantage. This gives you the opportunity to eliminate your debt during the time period in which you’re not required to pay interest.

You should never use a credit card with the idea that you can use a balance transfer in the future to improve your situation. However, if you find yourself swimming in debt and tired of paying interest, this may be the best financial move you can make.

Before you make a big purchase with your credit card, be sure to consider the long term impact. If you aren’t comfortable with the idea of paying off the balance in a reasonable period of time, it’s probably best to avoid the purchase in the first place.

What are your thoughts on using a credit card to make a big purchase? What are your feelings on using a balance transfer credit card to improve your situation? Share your thoughts and any past experiences in the comment section below.

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