Many cardholders are turning to credit card balance transfers as a way to consolidate their credit card debt to a more affordable credit card, typically, with a lower interest rate. There have been numerous individuals who have been reliant upon credit cards over the past months as a way to make ends meet, but when various credit card debts get out of hand, many consumers are often in search of ways to make their credit card repayment obligations more affordable.
Advertisements for credit card balance transfers often promise low percentage rates for cards for a set period of time. While there are some financial advisers who say these low introductory rates could be helpful to individuals who wish to transfer the balance of various credit card debts to one credit card, caution must be taken when consolidating credit card debts through balance transfers.
Advisers have often prompted cardholders who use credit card balance transfers to begin focusing as much money as they can towards paying down this debt. Interest rates and repayment timeframes often are the main problem for individuals who suffer from credit card debt as long periods of repayment and interest can cost more over the long run.
While credit card balance transfers and credit card consolidation loans are used by numerous individuals to handle their credit card debt, a cardholder who is choosing one of these options must make sure that it will be in their best financial interest before proceeding. Fees may be associated with credit card balance transfers or consolidation loans, and there may also be increases in an interest rate on a credit card after the introductory low interest offer expires, so cardholders are told to read the fine print and make sure they are in the financial position to devote as much cash as they can towards erasing this consolidated credit card debt lest they incur more costs than are necessary.