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Research: A methodical approach to successful balance transfers - Credit-Land.com

For anyone with credit cards, a mounting outstanding balance is a big nightmare. Most people find it hard to pay off what they owe on their credit cards, especially with the economic downturn just over. In many instances, it is balance transfers that provide a much needed respite to them. Consumers who are looking out for such offers have to figure out what is the best way to sort things out. There are different kinds of offers suited to different needs and you must take the time out to check what will suit yours. Paying a balance transfer for 24 months and getting 0% interest rates would be one offer while another looks at a higher interest rate and a onetime fee.

Ensure that you are clear about what will work ideally for your situation. Make sure that your balance transfer card is not used repeatedly for ordinary purchases, if your aim was to close off the outstanding balance you owe. Then you will find that there is a different interest rate applicable for new purchases and this just might incur heavy losses. When you wish to close a large balance, look at a card that will offer you 0 % interest rates for a longer duration. With most balance transfer cards, the offers available are for an introductory period, so make sure you know what time frame you have to sort out what you owe.

When considering a balance transfer for lower interest rate on purchases, look for one that is suited to this condition. There will be cards which offer you rates of interest and annual fees lower than your current one and will help cut down on costs of purchases. No matter how many balance transfer deals are available, the end rule comes down to using it more carefully so as to cut costs. Make sure that you don’t get carried away by the new rates and end up with too large a bill.

Consumers considering doing a balance transfer should carefully review their financial situation; consider the many conditions applicable and also what the rules are regarding payments and grace periods. Sometimes, a card which offers lower rates will have a strict policy on payment dates, if you need something that will grant you some kind of leeway, and then look for a different one that offers you a better choice. Credit cards are not to be messed with and balance transfer deals can be costly if not done carefully.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.