Find out what you can do with a credit card that lets you transfer your balance. Balances from credit cards with high interest rates can be moved to cards with low or no interest.
Today, credit cards have a lot of features that are meant to appeal to everyone, such as cash back, rebates, point systems, and frequent flyer miles. Many of these deals are only good for you if you buy a lot of big items often. On the other hand, if you can pay off the balance each month, you get more back. If not, the annual fees and high interest rates that come with these cards will make the rewards seem pointless. But what about people who always have a balance on their credit cards or can't seem to get out of debt? Balance transfer credit cards could help you deal with your problem for a short time.
Are you getting too much debt?
Many Americans have more than one credit card and are buried in debt. Creditors set traps that are easy to fall into. Credit card companies and banks make it easy to spend more than you can afford, sometimes to the point where you can't go back. It can be hard to get a handle on your debt. And if you can only pay the minimum on your accounts, that doesn't make much of a dent in how much you owe. It could take years or even decades to pay off that card. Plus, you'll end up paying hundreds of thousands of dollars more in interest.
But don't fret! Balance transfers can get you out of trouble, get you back on track, or even get you out of debt.
Grab the life preserver
If your money is a little out of control but you've managed to keep your credit in good shape, you're in luck. Grab the floatation device and you'll be able to see the light again. You don't have to be controlled by revolving credit. Use a credit card balance transfer to turn the situation around and get a handle on it.
The terms for transferring a credit card balance can be very different, so it's best to look around for the best deal. A lot of cards that let you transfer a balance offer 0% APR on all balance transfers. Some have higher starting rates, anywhere from 2% to 9% APR or more.
Interest rates on balance transfers usually only apply for a certain amount of time. This could be for three, six, nine, or twelve months. Some rare cards even offer transfer rates for an unlimited number of months. When the time period is over, the normal rate of interest is used. This can be anywhere from about 9 percent APR to as much as 30 percent APR.
How to Get Your Head Out of the Water
Some people might say that transferring balances is like "robbing Peter to pay Paul." In other words, you move your money from one place to another to try to avoid the bad things that happen when you don't manage your money well. It might look like you're taking care of things, but in reality, you're not. But if you use a balance transfer from a high-interest credit card to a balance transfer credit card carefully, it can give you more breathing room and time to catch up.
Balance transfer credit cards give you a lot of choices, especially if you always have a balance on your credit card or if you have too much credit card debt. With a credit card balance transfer, you can use these cards to get out from under your credit card debt and get back in charge of your money. Balance transfer credit cards are for you if you are stuck with high interest rates and realise how much money you are losing. Just make sure you don't fall into the dangerous trap of the plastic monster again.
