Every problem has a solution, but to truly identify the solution is the challenge. In our haste to get out of a mess, we tend to just run into anything that will give us solace even for a brief period without realizing this could lead us to messier situations! This is the case with people suffering with bad debts and thinking of balance transfers to rescue them.
There are reasons that balance transfers cannot be that stroke of luck you are waiting for.
The banks have a way of advertising to ensure they find customers in each of us. You would want to jump from your seat when you hear about zero percent balance transfer, but read on to find the details. A patient understanding will let you know that this will be only for the initial days. Moving forward, these credit cards will charge you a higher rate of interest.
Every purchase you make will become a burden on you. You will be accumulating and adding to the loan each time you make a purchase, the only difference being that you will now have to pay more interest compared to your previous credit card!
The heart of the matter is that you still have to repay. You may feel a great sense of relief with the balance transfer, but soon you will get off the hyped up feeling to realize that there is no vanishing of problem, if anything, it has only shifted places.
Balance transfers can help if you accept the reality that it is just a relief you could savor for the moment. If you choose the bank wisely, your decision to transfer your loan may ease your situation even in the long run. By consolidating all your loans, you may have reduced the interest you have to repay on the loans, but you still have to repay and that is the hard fact you have to digest.
As a permanent solution, change your spending habits and be more calculative. Don’t get carried away by sales and offers and get overboard with your purchases. Bring in healthy changes in your lifestyle but more than anything, realize that there can be no magic that can solve your problem; you have to find the right means to do it yourself.