When credit card issuers started increasing credit lines, promising low interest rates “for the life of the balance,” and sending consumers cash advance checks with large numbers already filled in – it was hard to resist.

Some merely transferred balances from higher rate cards. Who wouldn’t trade in their 10.9% balance for 1.9%?

Had everyone kept on paying the monthly minimum payments required at the higher interest rates, their credit card debt would have fallen rapidly. Unfortunately, many used that low interest rate and corresponding lower monthly minimum to reduce their monthly bill payments.

Others saw those offers of 1.9%, and even up to 6.9% as a way to reduce interest payments on a car, or on major home improvements. Read full article…