Which solution is NOT advisable for Carrie's credit card problem?

• A. Open a new credit card every 6 months with a 0% teaser rate.
• B. Negotiate with her credit card issuer for lower interest rates.
• C. Create a strict monthly budget to manage expenses.
• D. Transfer balances frequently between new cards.

Answer: (A)

Opening a new credit card every six months with a 0% teaser rate is not advisable for Carrie’s credit card problem because while it may provide short-term relief, it can lead to several long-term issues. First, frequently opening new credit accounts can negatively impact her credit score. Each time a new card is opened, a hard inquiry is made, which can lower her credit score, especially if she opens multiple cards in a short period.

Additionally, relying on teaser rates doesn't address the root of her credit card issues — managing debt effectively. Carrie's financial situation may not improve simply due to temporarily low interest rates, and she may end up accumulating more debt over time if she continues to spend without a solid plan. This approach can lead to a cycle of debt where she constantly needs to chase after new cards to keep rates low, rather than developing sustainable financial habits.

In contrast, negotiating with her credit card issuer, creating a monthly budget, or transferring balances judiciously can provide more suitable and responsible strategies for managing her credit card debt without incurring further risks to her financial health.