Balance transfers on credit cards are an often unrecognized way to climb out from under the weight of high credit card interest charges. Yet they are a profoundly powerful and easy option. Unlike making application for debt consolidation loans which can be a bit of a trial, balance transfers tend to be simple and fast as long as you meet the criteria.
It is not as difficult as you might think to obtain balance transfers on credit cards. Credit card providers are competing for your business and there are many special offers available at any given time. Look for balance transfer deals that offer the lowest balance transfer costs, lowest introductory and future interest rates, and lowest ongoing fees, charges and penalties. If you have multiple credit cards, try to transfer the balances of all of them into one introductory rate card. One payment is not only more convenient, it is lower than the combined amounts of different minimum payments.
When considering balance transfers on credit cards, make sure you understand all the terms and conditions of offers you are considering. You will be unable to make an accurate assessment if you don't do this. For example, one lender might offer a three month introductory term with zero interest but will charge a balance transfer fee and the normal interest rate after three months will be above average. Whereas a different credit card provider might offer a twelve month term with an interest rate of 2.5% and no balance transfer fees. In this case it is better to pay low interest because the overall financial benefit will be substantially greater. Of course, if you can find a zero rate card with a twelve month term and no balance transfer fees, go for it!
The easiest way to obtain balance transfers on credit cards is to use an all-in-one credit card website that provides information on a range of different credit cards from a variety of providers. This can save you a lot of research time. These sites also tend to provide an online application form so that you can apply to transfer credit card balances at any time or place that is convenient.
However, balance transfers on credit cards will only give you an advantage if you make good decisions. If you just enjoy the short term financial relief provided but do not use some of the interest savings to pay down your credit card balance, you will find yourself back in the same situation before you know it. Even if at the end of your introductory period, you choose to transfer your balance to yet another introductory low rate card, you have no guarantee that you will be able to keep doing this forever. After all, credit card companies might eventually wise up and change their rules. As much as possible, it is important to work at reducing the debt. If you do this, transferring your credit card balance to low or zero rate special offer cards can give you the financial leverage you need to turn your situation around.
