You’ve finally come to the conclusion that you have entirely too much credit card debt. And while you understand the need to take action, you’re unsure of where to start. Time to learn about the benefits of balance transfer.
If your debt is spread across several credit cards, it may make sense to consolidate it. One of the best ways of doing so is with a balance transfer credit card.
While the basic gist is simple to understand, it’s the actual benefits of a balance transfer credit card that will help you decide if it’s right for you and your financial circumstances at the present time.
Here’s why you should consider it:
1. Easier to Manage Your Credit Card Debt
It’s often a struggle to manage credit card debt when it’s spread across several cards. You have to track everything from your balance to your monthly payment due dates to interest rates.
But when you consolidate your debt with a balance transfer credit card, you’re left with one card. This makes it much easier from a management perspective, as there is only one set of numbers to concern yourself with.
2. Lower Interest Rate
One of the biggest concerns with credit card debt is the high rate of interest. Fortunately, when you opt for a balance transfer credit card, you can eliminate this once and for all.
There are two questions you should answer:
- How long does the zero percent introductory rate last?
- What is the interest rate after the introductory period expires?
You want to make sure you’re saving as much money on interest as possible, both now and down the road.
3. Better Terms and Conditions
Depending on your current cards and the one you’re considering, you may be able to score yourself better terms and conditions, which only improves your financial circumstances.
For example, you may be able to secure a rewards credit card, thus allowing you to receive points or cash back for every dollar you spend.
4. Easier to Eliminate Your Credit Card Debt
A balance transfer credit card doesn’t do anything to how much money you owe in an overall sense, but it still allows you to more easily eliminate your debt.
Here’s why: you only have one card to contend with, which makes it easier to manage and pay off.
Also, as noted above, since you have a zero percent introductory rate, you can put more money toward your balance, which speeds up the payoff process.
So, what do you think? Are you closer than ever to applying for a balance transfer credit card, or will you experiment with a few other ideas before going down this path?
A balance transfer credit card isn’t the right solution for everyone, but it could be just what you’re looking for. As long as you’re comfortable with the benefits and aware of any potential drawbacks, you shouldn’t have any concerns about pressing forward.