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Research: Balance Transfers - Dealing with credit card debts -

Credit cards are no doubt a very useful tool and one with much to offer to the clients. Credit cards come with various offers on them to attract customers like cash back offers and rewards programs. When people grab it and start spending they realise the interest rates are not feasible and will find it quite difficult to meet with payment deadlines. In such a case, credit cards offer a balance transfer. It is not an elimination of the debt, but a transfer to a different card with low interest rates at a fee. Many cards may offer lowered interest rates over a stipulated period of time, within which people may have to pay up or it reverts back to the higher interest rate.

People may keep moving their credit card debt around on different cards and try to manage the finances by paying a minimum amount as interest on borrowing. There will be however a fee charged for balance transfer but through good money management and understanding of the cards regulations, credit card debts can be settled in the time allotted.

The amount of money a person may save through such means is variable. IT would depend on the money owed through purchases made and the interest rates at the point. There are debt relief consultants and debt counsellors who can provide a better understanding of the cards available and how best to manage the money in case of credit card balance transfers. There are also numerous websites offering comparison of the low interest cards in the market, so spending some time researching before shifting things around would be a good idea.

When doing a balance transfer, be sure to read and question all terms offered thoroughly. Check that it is applicable to cash advances and to new purchases made on the card. You will be required to stay within a set credit limit and to meet with regular deadlines for payments on the low interest card to keep the offer running. There could also be ways to extend the promotional period by paying a low fee.

Make sure that whatever options you chose to work on your debt you do not forget to make the monthly payments and bring down the balances. When you obtain a new card, resist the urge to spend on it. By restricting how you spend and setting aside what you need to work out the debt you can bring your credit score up and increase your credit worthiness.

There are also regulations in place to protect the customer. Check that you are informed of all details of the promotional offer; there are laws in place requiring maximum transparency in the agreements. There is also a requirement to inform a customer in advance if the promotional period is ending giving them ample notice of the same. The aim of doing a balance transfer is to settle the debt, so take care to cut down on purchases and bring down the outstanding amount.