Balance transfer credit cards
18 August 2008
Balance transfer credit cards can provide an excellent way of reducing credit card debt, but they require a great deal of self-discipline. While on the surface balance transfer credit cards seem to offer an easy way of reducing the amount that your credit card debt will increase as you repay it, many balance transfer credit cards come with a catch.
Quite often, balance transfer credit cards will require the user to repay all transferred balances before any new debts can be addressed. This means that if any spending is paid for with the new credit card before the transferred balances are repaid, it will accrue interest at the normal rate. Interest free days on purchases also may not apply until the balance transfers are repaid, meaning that may people end up in a situation where they repay one debt only to be faced with a new debt at the end of it.
Finding credit cards that combine the best of low interest credit cards with the best balance transfer credit cards can alleviate the problems of spending before you have repaid balance transfers. You may wish to merely prepare for a period where you cannot use your credit card, however. This could be difficult if you have set up bills to be automatically paid via credit card, but you may need to put up with a little inconvenience if you would like to have a chance at reducing your credit card debt.
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