Transfer a credit card balance

Do you find yourself faced with a large balance on a high interest credit card (or multiple credit cards)? You have several options for digging out of debt, with all of them presenting a unique set of pros and cons.

Have you considered transferring the balance to a credit card with a lower interest rate? Known as a balance transfer, this is one of the best ways to save money while speeding up the repayment process.

Here is the lowdown on three of the top benefits of balance transfers:

1. You are in position to secure a lower interest rate. The primary benefit of a balance transfer is that you can move your debt from a high interest credit card to one with a more reasonable rate.

You may even qualify for a zero percent offer, meaning you are not required to pay any interest for a particular period of time, such as six months.

Tip: thoroughly compare all your options to ensure that you are transferring your balance to the credit card with the lowest interest rate.

2. Simplify your financial life. Are you tired of paying on several high interest credit cards? This can become complicated, not to mention the fact that interest charges can quickly add up to hundreds of dollars.

With a balance transfer, you can get all your debt under one low interest credit card. In addition to saving money on interest, it becomes easier to keep track of payment dates and avoid late fees.

In many ways, this can be looked at in the same light as student loan consolidation. You are taking all your credit card debt and moving it under one “low interest roof.”

3. Avoid ongoing fees. There is a good chance you will be charged a balance transfer fee, however, this is something you only pay once upfront.

When you have multiple credit cards, you may find yourself paying multiple annual fees – and that is just the start. Have you missed a payment because you are disorganized? Once again, you will be forced to pay a fee.

Most people learn that a balance transfer, in which all their debt is put under one card, allows them to avoid unnecessary fees in the future.

These are three of the top benefits of a credit card balance transfer. Can you think of any others that will have a positive impact on your finances?

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