If you ever find yourself stuck with high balances on credit cards with a high interest rates, finding an appropriate balance transfer card can be the quickest and easiest solution to save you hundreds or even thousands of pounds of interest. With many companies offering introductory offers of a 0% APR for all balance transfers for up to and over a 12 month period, transferring balances from high rate credit cards can be a quick and painless solution to paying high fees, and could help your credit report as you consolidate without any defaults.
With credit card companies constantly competing for your business, many offer special introductory rates on any and all balance transfers within a certain time frame of obtaining credit. By combining several higher interest rate balances onto one card with an introductory rate, you are given the convenience of one payment versus many, and will save hundreds or even thousands of dollars on interest fees. If you find yourself only making the minimum monthly payment on three or four cards charging anywhere from 10-28% APR, transferring your balances to a credit card with a great introductory balance transfer rate can save you a bundle.
While there is a fee usually associated with balance transfers usually around 3% of the balance transferred, it is typically minimal and can still provide excellent savings to the well informed consumer. Balance transfers don’t necessarily mean lower monthly payments, however, as transferring multiple balances can result in a higher single payment than you were paying before. However, with a single payment as opposed to multiple, the debt will be paid down faster. If balances are transferred, for example, to a card with a 12 month introductory offer of 0% APR, you can consolidate your finances and manage to pay it off in that first year, you can find yourself debt free.
Finding the right card to suit your budget depends on several factors such as the amount of debt you wish to consolidate, your credit score and how well you are able to pay off your debt. If you find yourself struggling to pay the bills every month, transferring all of your credit card debt to one single card can possibly help – or can make matters worse. It is advisable to carefully consider the options and terms of any card you are considering, especially if you don’t think you’ll be able to pay off the balance transfers within the introductory period. Pay special attention to what the interest rate will be after the introductory period reverts back to the normal rate. If the rate is no better than you were paying, check around at the other options available.
However, if you are responsible with your credit and find that making one payment is preferable to many, or want to get rid of your higher interest rate cards outright, transferring the balances to a new card can save you hundreds in interest alone, and can save you even more if you’re able to pay it off. Balance transfer cards are a sometimes essential tool in managing credit card debt responsibly, and can offer the responsible consumer a much needed break from interest rates that go through the roof.