Most of us, at some point of time, have had to face situations where paying off credit card debts took a heavy toll on our monthly cash outflow. With credit card interest rates being as high as they are, it is no surprise that making monthly payments can be difficult, particularly if you are struggling financially. In cases like these, employing smart strategies can often make a world of difference. One of these is opting for a balance transfer
account with a new credit card company.
The credit card industry earns much of its revenue from high interest rates, going up to almost 16% per annum at times. With the number of credit card users increasing exponentially each day, many end users experience difficulty in making the monthly payments. This amount can keep escalating due to high interest rates. A balance transfer account can be a lifesaver in these times, as it reduces monthly expenditure and gives you more time in which to pay off your debt.
Often, in a bid to lure customers and to make sure they stay loyal for a length of time, credit card companies offer the option of transferring their debt from an old account with another company. The offer is usually coupled with a grace period of paying off the amount, during which the interest charged is usually zero or a very minuscule amount. This is an attractive option for people struggling to pay back high amounts of credit card debt, as it lowers the monthly cash outflow, and gives consumers more time in which to pay back the debt.
If you have opted for a balance transfer account, the best way forward is to research the available options and to select the best offer. Close the old account and migrate to the new one, taking care to make note of the grace period offered and the interest rate charged for that period, if any. After the paperwork is completed, you will have your existing debt balance transferred to your new credit card. Thereafter, you can pay off the debt at relative ease in your own time.
The decision to opt for a balance transfer account should never be taken without careful research. Take a look at the many options provided by different companies. Be diligent to spot the fine print. Many companies charge a fee to facilitate the balance transfer. Also, make sure that you plan ahead, keeping in mind the grace period on offer, so you are able to utilize the time efficiently and pay back the debt according to plan. It is an important decision and should not be taken lightly. If you go about it the right way, a balance transfer account can be your savior at a time when high monthly credit card payments are setting you back financially.