Balance Transfer as a Debt Elimination Solution
By: Andrea Smith
Advertisements of balance transfer credit cards are very popular in the market. But can these credit cards really help in consolidating and eventually eliminating debt?
Should you transfer your balances to a new credit card?
Using a balance transfer card for consolidating bad debt can be a smart move. However, you need to be very careful with the type of balance transfer card you choose. Bear in mind that the rate of interest isn’t the only thing you should be concerned about. Aside from a low rate, you’ll need a card with reasonable fees and charges.
As much as possible, you’ll want to find a balance transfer card that carries no annual fees at all. To be able to make the right choice, compare one credit card from the other. Carefully review the Terms and Conditions page of each card that you’re considering.
After choosing the right balance transfer credit card, does that mean you’re work is done?
After transferring your credit card balances, the real work begins. In order to work, you need to be able to keep up with your monthly payments. If you’re really serious about recovering from debt, you can’t afford to be delayed with your payments.
Don’t forget that the zero interest rate will not last for a long time. Some cards offer the 0% APR for just 3 months while other cards may offer a longer 0% APR period lasting up to 6 or 12 months. In any case, do your best to pay off all the balances you’ve transferred within the zero interest period.
Be careful with using your balance transfer card in new purchases. Take note that the zero interest rate may only be applicable for balances that have been transferred to the card. You could get charged with high interest for new purchases or new charges in your account.
Finally, controlling your personal spending is the biggest key towards debt recovery. Credit card consolidation would be a lot easier to manage if you are not burdened by unnecessary expenses.
Andrea Smith is a writer and consultant with Consolidate4Free.com and has been providing consumers and business owners with Free Debt Consolidation Advice since 1990. For years she has helped people with loan and credit problems especially pertaining to Debt Consolidation and Credit Card Debt Consolidation. Copyright 2008.
Article Source: http://www.ArticleBiz.com
ไม่มีความคิดเห็น:
แสดงความคิดเห็น