In the prior installment of this series, we listed several approaches to debt consolidation. For this third post, we’ll be turning a critical eye toward the first one on our list, the popular credit card balance transfer.

At a high level, evaluating and using a balance transfer follows a 7-step process:

1. Gathering information about your current cards
2. Finding balance transfer offers
3. Understanding the terms of a balance transfer offer
4. Crunching the numbers
5. Making a decision
6. Things to do after the balance transfer takes place
7. What not to do after the transfer

Let’s take a closer look at each…

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Popularity: 33% [?]

In the first post of this series, we explored the different ways to pay off credit card debt. As I stated in that post, debt consolidation is my recommended approach. In part 2 of this series, we’ll now take a broad-brush look at some ways you can combine your debts under one lower rate.

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Popularity: 28% [?]

Number of credit cards used… 3.

Free money earned… $2,222.75.

Finance charges paid… $0.

Having credit card companies pay you instead of the other way around… priceless.

Last year, I earned over two thousand dollars in free money using an arbitrage strategy with cash back credit cards. I say this not to pat myself on the back, but to make a point that credit cards do not necessarily have to be a bad thing. When used in a certain way, they can be quite profitable.

Credit cards make me money (instead of costing me money) because I pay off my balances in full each month. I realize though that I am in the minority of the credit card using public. Due to family emergencies, unexpected repairs, or even a bit of impulse spending, many people have credit card balances that exceed their capacity to pay off in one fell swoop.

This multi-part series of posts will show you how to pay off credit card debt and get to the happy place where you can turn the tables on the credit card companies and have them pay you for a change.

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Popularity: 21% [?]