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7 safe borrowing tips to keep debt in check

Avoid the zero percent trap
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Avoid the zero percent trap

When it comes to car loans and credit card debt, zero percent financing isn't likely to save you much money, Maurer says. And if you're not careful, they actually could cost you more.

"(With car loans) there is no zero percent when, the minute you drive the car off the lot, it's worth 40 percent less than when you purchased it," Maurer says.

With credit card debt, borrowers will come out ahead only if they pay off the account balance before the offer period expires. If you're even a day late on a payment, you could be charged interest retroactively on the entire cost of the item.

"I don't think it's worth the potential of making that mistake," Maurer says.


 

 

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