BALANCE TRANSFER - WISE CHOICE FOR THE DILIGENT

2007-03-08 10:33:40

( Financial )



Do you want o find a way out of the debt web you've spun? Balance transfer is an option. It can save you if used wisely.

Balance transfer simply means transferring your credit card balance to a new card. This is synonymous to consolidating your credit into one account.

In the first glimpse, it is not smart to get another credit obligation if you are already having trouble with the one you are currently using. However, balance transfer is invented by the credit card companies to entice you to switch to their company. If you are resolute in getting rid of your debt, balance transfer could work for you.

The new credit card company you employ will pay off your old credit card company by directly sending them the check or they could send it to you.

For this to help you save money, you should look for a low interest balance transfer if not a zero balance transfer offer. Settle your old credit card balance as soon as possible. Otherwise, even a zero percent balance transfer would not make any sense. Also, make sure that you settle your balance with the most costly credit card company first.

There are a lot of 0 balance transfer offers you can avail off. Avail of the low interest introductory offer. You can also transfer your spouse's credit balance to your new card. Just be sure that you pay his/her credit card company when you receive the checks.

However, be aware that just by availing of low or no interest balance transfers will not automatically save you from your debts. You should also take active part in reducing your debt. This will require your will and effort.

If you are availing of an introductory rate offer, know how long the offer would last and how much apr they get after the offer. You should also know where the introductory rate applies, is it just for balance transfers of will it include new purchases? Ask for your new card's annual fee, their late fee and how much do they collect if you go over the limit.

Know if your new card company collects balance transfer fees and how much it is. Compute and be patient in learning, after all, you would want to reduce your debt, and not be plagued with hidden fees.

Compare the offers of different companies. Shop wisely. If you settled on what company you'll transfer your balance to, be reminded of the following:
First of all, do not delay your payments. Delay will cause the 0 apr balance transfer offer to disappear. Pay as much as you can, the longer you put off payment, the longer the time to reduce your credit balance. And, above all else, please read the fine print.

Lastly, do not get yourself into that debt web you just got out of.


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