It seems difficult to think that opening a new credit card can actually help in paying off credit card debts. But indeed anything is possible, especially if your credit card company endorses it. This can be done with a service that credit card companies are offering today called balance transfers.
The reason why people get into credit card debt is because they fail to see the extent of the loan they are getting. It only comes as a shock when they realize the interest that is piling up on a purchase they couldn’t afford in the first place. Nowadays, the usual APR for most credit cards is at 16% per annum, which can be heavy on the pocket. To help consumers relieve themselves of a growing credit card debt, and to entice these buyers to open a new credit card, companies have offered a service called bank transfers.
Bank transfers allow consumers to “transfer” their credit card debt to a new credit card. This process does not eliminate the debt in any way, but usually the new credit cards will give consumers a grace period before interest resumes. This could mean huge savings especially if the introductory rate is at 0% for balance transfers. Often the introductory period could last for as long as six months. If your balance is substantial, a 0% interest for the next six months could be the way for you to pay off that loan without incurring even more debt.
Best Balance Transfer Credit Cards
Getting a new credit card that allows balance transfers could be the solution to your credit card debt problems. However, diligence is still required since some of these cards do have hidden charges that could still pile up in cost. Some of these hidden charges can come with fees proportional to the amount you need to transfer, annual charges or joining charges. Remember, since these companies already have you as a customer, don’t be timid in getting all the details or asking for assistance. Make sure to choose the best balance transfer credit cards 2011 can give you, to rid yourself of credit card debit and to begin a debt free life.