Okay, answer me honestly: how often have you found yourself maxing out a credit card, only to turn around and apply for another one? All too frequently, when people who have a problem with getting that ‘insufficient funds’ warning when they slap down that plastic card for a purchase, they simply get another card. Instead of facing the fact that they have a credit card problem, they simply max out another card.

Well, if this describes you, consider the choice of putting all of those maxed out cards onto one card by securing a balance transfer card. Often, you can take advantage of lower interest rates and fees, plus experience other features, such as being waived for the annual charge when you pay your bill faithfully every month.

When securing a balance transfer credit card, you can breathe a little easier when it comes to keeping track of all those other cards that have been maxed out, as well as the monthly bills on each card that shows up throughout the month. There can be some peace of mind knowing that you only have one credit card bill showing up each month to address.

Banks and lending institutions are all too aware of the spending habits of many people today and that their tendency can be to max out the limit of their credit cards. This is the number one reason why balance transfer cards are so popular to begin with and why they are so available. So, how do you get one of these balance transfer cards?

In a nutshell, first insure that the interest rate is better than the one on your current cards. If not, it will not be worth the effort, simply because you want to save money in interest charges as well as consolidate your credit card debt. After determining this to be the case, when you sign up for a balance transfer card, you are given the option of transferring all of your other credit cards to the new balance transfer card. Often these balance offers lock you in to a lower, fixed rate for a period of time; usually six to twelve months. What a great deal, right? So, the next question you may be asking yourself is: why do they make these balance transfer cards available?

The answer is very simple and comes down to one word: competition! There are numerous credit companies around and they are all competing for your business. They may well be getting you off the hook by offering you a lower rate and a chance to transfer all your credit card balances, but they are also betting that you will stay with them and that will earn them your money!

That being said, be sure to go into this transaction with your eyes wide open. If not, you could turn this opportunity to consolidate all your credit card debt into a trap. It is imperative to point out that, by taking advantage of this opportunity, it does not give you license to keep on spending like there is no tomorrow. After all, that is what got you to this point in the first place, and you don’t want to go backward, right?

Keep in mind that, in order to take full advantage of any balance transfer card, you have to use it as a tool to turn this credit card ship around. Reason being, any new balance transfer card will come with a time limit on the lower interest rate and, if you keep maxing out this card, your low interest rate will balloon and you will end up worse off than before in interest fees and charges. Should this happen, you will never get out of credit card jail!

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