If you’re looking for a way to minimize the interest rates slapped onto your credit card payments, then it’s time you consider a credit card balance transfer. Low-rate balance transfer offers from credit card companies provide you with the ability to transfer the debit account, otherwise known as debt, you may have with one credit card to another account.
A balance transfer is where part, or all, of your debt you owe a lender is transferred from one card to another. A credit card balance transfer is quite simply an excellent way to save money by avoiding high interest rates plaguing your payments today. Not to mention, consolidating all of your payments into one account makes for easier organization and tracking of payments. Many times, we fail to make payments because we forget that the payment is even due.
Is a balance transfer something that will help me?
Transferring more expensive debts you owe to a new card with a lower interest rate and paying only the minimum amount due each month will lower your monthly debt repayments, making the entire process more manageable. However, it may take you longer to repay this kind of offer. With lower interest rates, there’s less of an incentive for you to make big payments as frequently as possible. You need to ask yourself if you’re going to be responsible with this new kind of leniency.
How do I make a balance transfer?
There are a lot of balance transfer options available to you today. Generally, you will be contacted by the lending institution about their new account offer. You’ll be promoted to indicate whom you want to pay, your account numbers, and how much you wish to transfer to the new account. Once approved, the new account company contacts your billers on your behalf and settles the difference that you owed with them. Remember, it can take up to weeks for this process to complete.
Top transfer benefits include:
- The ability to catch up on your mounting debt.
- Consolidated money management so you can catch up on all of your payments.
- Time to assess your payments and make changes in the future.
Also, never forget to read the fine print regarding handling fees. Sometimes, companies will wave their lower interest rate flag in your face, but slap on a hefty transfer fee if you decide to go with their offer. It’s most common to see a 3 to 5% transferred debt fee when electing to make a balance transfer.
Most transfer offers will let you transfer balances from store credit cards, gas cards, and travel cards. You are only permitted to transfer the credit card spending limit you were provided with when you first secured that credit card. There are so many credit card and balance transfer companies out there today, that if you just take your time to really do your homework and read about rates, fees, and hidden costs, you can leverage the power of the balance transfer to your debt’s advantage.