What is:GOOD DEBTBAD DEBTAvoid the zero percent trap8 of 11When 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. Related Articles:Credit cardsMortgage calculatorStudent loansDump debt in 2010Related Links:Best 2010 credit card movesDebt reliefDebt payment calculator10 ways to debt disaster advertisement
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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