Save Your Money with a Balance Transfer Offer

2007-03-08 10:33:40

( Financial )



A sensible strategy for money management is one that enables you to have more cash or lessen the impact of your monthly payments on debts, and after spending more money than you have with credit cards, you may think of feeding your cards to the shredder and swear that you will never use them again. But before you actually do that, remember that with the increasing pressures of shrinking global economy and competition, credit cards have found a way to increase their client base. And that is by providing you a tool that, used rightly, could be the answer to your financial problems: this tool is the balance transfer offer made through balance transfer cards.

Balance transfer cards usually work by offering you a balance transfer offer from your previous credit cards. No difference there, you might say. Well as an inducement for you to avail of their services, balance transfer cards usually have an interest-free period or a fixed lower rate interest rate associated with it. You will not make money out of the deal but at least you will be able to save some.

An interest free balance transfer offer, however, does not last forever. At most, it would only give you up to 15 months if you are really lucky. After that, the honeymoon is over and you are back right where you started. The fixed low interest rate is better in the long run because as long as you keep your payments current, you may be able to maintain your debt at a low rate forever. This of course depends on the terms and conditions of the balance transfer offer you took advantage of.

Nor does a balance transfer offer sound good as what the banks might like you to think. Yes, you have got a plum deal, at first. Enjoy it while it lasts because one missed payment means loss of the zero interest or low rate interest privilege. The fall-from-grace position can be far worse than where you were before. So read between the fine lines and strive to look for the best balance transfer offer that you can qualify for.

A balance transfer offer might have many potential traps set out for you, but armed with the right information and knowledge on how this actually works, you could actually emerge the victor at the end of your financial battle.


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