Are you suffering from credit card or store card debt? You might want to consider shifting these balances to one 0 balance transfer credit card to ease your plight. We all try to find a deal where it is possible, and credit card companies tend to make it easy for us in some regards. Like any product, you should review what is out there and avoid some of the tricks companies can play with their balance transfers.
A balance transfer allows you to take money from one credit card and put it on another. If you have a 0 balance transfer credit card this is referring to 0 percent interest. The interest will last anywhere from 3 to 15 months depending on the deal. To get a longer period for your balance transfer you usually have to be in good standing with all debts and have a minimal debt amount. You also need good credit scores. The balance transfer option is not so that you can pay less each month to the credit card, but so that all the payments go to the principle of the balance rather than interest.
In this case, you are paying down the card rather than paying more to get it paid down. Choosing the right card takes some heavy research because each company tends to offer a little something different.
One credit card company may provide 0 percent for 12 months with a 3 percent balance transfer fee. This balance transfer fee can total up to the amount you would have been paying in interest each month. There is a trick to making this work though. If you transfer the balance and pay the balance transfer fee up front you can forget about that extra money. In other words, it just allows you to pay the sum all in one sitting rather than how you would pay out interest.
Some of the credit card companies do not charge a fee. This is highly rare. Typically it is an introductory special that they offer once on the card. It means you need to transfer the balance all in one shot. It is the best deal you can find even if it is for six months, as long as you can pay the card off.
Here is where the balance transfer card can be a little difficult. If you cannot pay the card off in the allotted time the move has only benefited you slightly. After the deal is over you go back to your regular interest rate. If you make a late payment or miss a payment all together you will also find your balance transfer deal has been scrapped. The deal has provisions in that you must keep your account in good standing for the duration of the promotion or you will lose it.
The best thing you can do is look for the longest term deals that are the cheapest. Even paying 1.5 percent in a fee is better than 3 percent.
