January 2012

In recent years, credit card issuers have hit upon an amazingly profitable sales tactic: incredible introductory rates. In some cases, they can be as low as zero percent -- which, on the face of it, seems like a great reason for you to transfer your balance immediately.

After all, with such a low (or no) interest rate, you can manage your money better... so it makes sense to switch, right?

Not necessarily.

Debit card holds, also known as pre-authorizations or "blocking off", represent an aspect of commercial purchasing that many consumers are completely unaware of. But placing holds on debit purchases is a common practice, one you've probably been subject to more than once.

Usually this sort of pre-authorization isn't a big deal, but it can be costly and annoying if your bank account balance is low to begin with.