Balance Transfer Credit Cards
Balance transfer credit cards have become an excellent means of credit card debt reduction due to how easy it is to consolidate multiple credit card debts on them. As balance transfer credit cards normally only allow balances to be transferred with application, it is quite a straightforward process that can stop debt from building up for many months.
Many balance transfer credit cards offer a lower than usual rate for a long period of time, but there are also quite a few which provide an interest free period for transferred balances that can last for as long as six months. For credit card users who are prepared to spend a small period of time dedicated to reducing their credit card debt this can be an invaluable tool.
A trap that some people fall into with regards to balance transfer credit cards is that a few institutions charge the cash advance rate on balances that still remain at the end of the balance transfer period. As this interest rate is routinely higher than the purchase rate this can make certain debt situations worse than before the balance was transferred. Another problem with balance transfer credit cards is that users are generally forced to pay off the balance entirely before they can pay off any new charges they make. Often interest free days on purchases are also withheld until the transferred balance is repaid, so balance transfer credit cards are not usable without adding to existing debt until the existing debt has been paid off.
If you can responsibly restrain your use of credit cards until you have paid your transferred balances in full, then you may be interested in debt reduction strategies using one of our range of balance transfer credit cards.