Consolidate Debt with Balance Transfer Credit Card Major credit card companies offer teaser rates at 0% to 9%, these rates are good for up to 6 months after you receive your credit card.
For card holders who have large credit debt and high interest rates it would be beneficial for them to have transfer the balance from the high interest rate card in order to save on interest payments.
Depending on how large the balance transfer is will determine the costs incurred since this transaction is considered the same as a cash advance. When you first receive a credit card check to see what the balance transfer fees will be. If possible try to get any promotional offers that allow for the initial balance transfer fee to be waived.
Balance transfer credit cards help you to consolidate your credit card debt on to one card for better management of your finances, while saving money on interest charges.
Ways to save on interest when using a balance transfer Once a purchase has been made on the credit card take advantage of the credit grace period, most cards have a 25 to 30 day grace period before interest is charged on the outstanding balance, use this time to transfer the balance from your high interest credit card to the teaser card. This will save you lots of money in interest payments.
Once the balance is transferred find out what the payment due date is and make the payment before the due date and pay more than the minimum payment listed on your credit card statement, this way you will be able to pay down the principal and not just the accrued interest. Each month this interest is applied to your card making it harder to pay the principle, budget your finances so as to keep track of your financial plan. Your plan should be to try and pay off your credit card debt and use the balance transfer credit card as a tool.
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Posted on Friday, March 26th, 2010 at 3:47 pm
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