Balance Transfers – Dealing with credit card debts


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » Balance Transfers – Dealing with credit card debts

Balance Transfers – Dealing with credit card debts

The content is accurate at the time of publication and is subject to change.
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.

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.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!