It's not hard to max out your credit cards before you even realise it. Soon, though, the bills you have to pay for the things you bought start to cut into the money you have. Before you know it, you might find it almost impossible to pay your bills. But getting another credit card might be just what you need to get a handle on your debt. In fact, you might need a new credit card with a balance transfer to help you pay off your debts.
You can move debt from one credit card to another with a balance transfer credit card. As a way to get people interested in their credit card, many companies that offer this type of credit card offer special deals on this kind of transaction. The interest on a good balance transfer credit card will be 0% APR for up to 15 months. This means that you don't have to pay interest on the money you move to it.
The benefit is easy to see. A new card saves you money because you won't have to keep paying high interest on your credit cards, which means you'll be able to put more money toward the principal. You don't have to pay interest for a while, so your whole payment goes toward paying down the principal on your old bill, unless you've used the credit card for other things.
With this kind of credit card, it makes a lot of sense to combine your debts, especially if you make sure not to use your cards to their full limits again. There should be new rules about those other credit cards. Most people would be better off if some of them were destroyed.
You can put all of your smaller debts on one credit card by using a balance transfer credit card. Check the offers carefully, though, because some of these cards charge up to 4 percent for transfers. You should also know that some cards won't let you move debt to them once you have them. In these situations, all of the transfer amounts need to be written down on the application.
In some cases, the introductory offer will also be different, so you need to pay close attention. Sometimes the special introductory offer for a balance transfer is only good for three months, while the other parts of the same offer may be good for a year. You'll need to read this carefully to be sure you get what you think you're getting. Having 0% APR interest for only three months will help, but not much because it is so short.
You can get more time to pay your bills if you use one of these credit cards to consolidate your debt. Make sure, though, that you pay your bills on time with this new card. Some of these lenders will take away the introductory offer rates if you make even one late payment or don't make the minimum payment. They may even charge you an interest rate of up to 29%. Of course, that won't help you get out of debt!
