Are you submerged in credit card debt? If yes, then you must be considering credit card balance transfer to eliminate your debt.
6
May
2011
Stacy B Miller's picture

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Are you submerged in credit card debt? If yes, then you must be considering credit card balance transfer to eliminate your debt. Well, 0% balance transfer offers are quite common these days, and they are becoming more and more popular with the consumers. But they can also put you in trouble.

What do credit card companies promise with balance transfer?


  • The lucrative “one bill a month” offer-If you transfer balances to a low interest credit card, you would have the advantage of a single monthly payment instead of multiple payments to multiple creditors every month.
  • The highly tempting 0% APR on transferred balances till a certain time period-The credit card companies attract consumers by offering a limited period 0% APR offer.

How can balance transfer sink you further in debt?


Read balance transfer offers a bit more carefully. You would notice some significant details at the bottom of the page:

  • When the promotional offer ends (usually within six months) the APR will shoot up to a scary figure. In case of default, the APR will climb up even more and leave you in a miserable state.
  • There is an annual fee charged by most credit card companies. Surely, you won’t like it.
  • Almost all the tempting 0% offers are accompanied by a transfer fee. And balance transfer fees are steadily climbing up.

Balance transfer can be a reckless move if you are already in debt. Instead of fixing your debt woes, it can put you further in debt. If you have poor spending habits, and you have not bothered to read the “conditions apply” disclaimer, then balance transfer will surely backfire. Therefore, you must critically understand an offer before opting for balance transfer.

Alternatives to balance transfer


If you are looking for a way to get rid of your credit card debt woes then consider the following points:

  • You can negotiate interest rates with your creditors. Consider hiring professional help for this purpose.
  • You can also consolidate your high interest credit card debt.
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