Balance transfers and introductory rates can make it very worthwhile to shop around and be choosy about the financial products you purchase. If you are carrying a balance on your credit card, you can get another card that has a low introductory interest rate and transfer the balance from your old credit card to the new credit card.

Be careful about the time line for introductory rates. The low introductory interest rate does not last forever. Most cards have a 6 month introductory rate. Some have 12 months. After this time the rates return to normal, which, in most cases is close to 20%.

Another easy slip up that will fast track you to the regular rate is a missed payment. Even one missed or late payment on your new credit card can be the basis for eliminating your introductory low period.

You should also be careful about adjustable rate programs, which can vary the interest rate significantly. In these programs, the interest rate is tied to the prime rate which is dictated by the government. If the interest rates are rising, this can be very costly and eventually put you over the top.

Most people will tell you to shop around for the best rate. Whether you are looking for a loan, a mortgage, a credit card or some other financial product, it’s wise to shop around. This is a good advice, for most part.

But how you do it matters, and it matters a lot.

If you have a good credit history you could have some negotiating power and have financial institutions clamoring for your mortgage or credit card business. If you don’t, looking around for the best rate can destroy your credit even further.

It’s a double edged sword: every credit inquiry lowers your score but in order to get the best rate you have to shop around. If your credit score can handle it, don’t hesitate to shop around. Once you are approved…

Don’t take the first offer you get!

The first offer of a loan, mortgage or credit card doesn’t have to be one you jump on. Don’t hesitate to see how competitors to your bank or financial institution fare in terms of savings. Once you have a couple of offers, take it to each lender and try and negotiate an even better rate or terms!

But always remember: never get in over your head!

It’s easy to blame the government, but in this case they are certainly not the innocent bystander. Take a look at the movie below and tell me what you think about it…

How did we get into this “mortgage” mess anyways?

The real question is how do we get out of it? How do we get rid of the monster mortgage, renegotiate with the bank and not declare the bankruptcy in the process?