| Credit card debt is a fact of life for millions of Americans. Once you have credit card debt racked up, it
can be difficult to get rid of. A low balance transfer credit card provides a solution to this problem. By
understanding how they work, you can use balance transfer credit cards to help you get out of debt.
The right credit card (low balance transfer credit card) will allow you to transfer the amount due on other
credit cards to their credit card. Many offer a low interest rate or a 0% APR introductory rate on the
transferred amount. This way, you can avoid paying hundreds of dollars on interest. By making
payments each month, you reduce the balance and save on interest expense.
Low balance transfer credit cards come in many shapes and sizes. Some charge a fee to transfer
balances; others do not. Some offer low interest rates for a certain period of time; others allow a fixed
low interest rate on the balance until it is paid off. Certain balance transfer credit cards come with a
rewards program or additional perks. While balance transfer credit cards offer a great rate on the initial
transfer, some include a high interest rate on new purchases. The payments you make will first be
applied toward finance charges, then the transferred amount, and finally the new purchases. Your best
bet is to find a balance transfer credit card that offers 0% APR on new purchases for the length of the
promotional period. You may be surprised at how may credit card issuers are offering 0% APR on both
the balance transfers as well as on new purchases for up to 12 months.
Before you apply for a low balance transfer credit card, be sure that you understand your financial
situation. Look through your credit cards and the interest rates on them. If you are carrying balances
with high interest rates, you may be spending hundreds of dollars each month on interest. It could take
years to pay off the initial amounts placed on the cards. By transferring the balances to a credit card
with a low interest rate, you can pay off the amounts faster. Also, balance transfer credit cards allow you
to consolidate your debt. Keep in mind that some balance transfer credit cards only offer a low interest
rate for a certain period of time. Many cards have a high interest rate or variable interest rate that kicks
in after six months or a year. If you haven’t paid off the balance by then, the higher interest will continue
to increase your debt and work against you. If at all possible, you will want to pay off the credit card debt
that you transfer within the grace period.
After you have done your research and understand your finances, you are ready to apply online for a
balance transfer credit card. Pick one that suits your needs. Then set up a system to pay off the
balance. Balance transfer credit cards can provide the first step toward getting out of credit card debt. By
placing all of your credit card debt in one place, you can make just one easy payment each month. You
also will be able to enjoy paying 0% interest for a period of time on your balances. With a little planning,
you will soon be on the road to zero credit card debt and good money management.
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