There have been consumers who have found debt relief from their credit card obligations through balance transfer offers which have essentially allowed them to consolidate their credit card debts onto a lower interest credit card. This been an option for some cardholders simply because they have found a credit card or have been offered the option to transfer their balances onto a card that has a low introductory rate, which obviously can save on the overall costs a cardholder will meet when interest is factored in.
Yet, there are some concerns over cardholders who misuse balance transfers, but there are also some proponents of these balance transfer opportunities, as they can help a cardholder consolidate their debt at a low interest rate and, in some cases, erase their credit card debts at a lower cost.
However, there are concerns related to credit card balance transfers and mistakes that cardholders have made when using this method to essentially consolidate various credit card debts onto one low-interest credit card. Essentially, cardholders who may have debt on a credit card with a high interest rate or various credit card debts on multiple cards have used balance transfers as a way to erase that high interest debt or multiple debts and put them on one card with a low introductory rate.
Ideally, cardholders have been focused on paying off this debt which has been consolidated onto their credit card with a low rate, but there have been mistakes by cardholders who have made transfer balances more problematic rather than helpful. Cardholders who are drawn in by low introductory rates are often advised by financial counselors to make sure they read the fine print as these cards can sometimes increase in interest after a set period of time.
Also, a low introductory rate has caused some cardholders to begin using the card on which they have made their balance transfer, which simply adds to their debt and, again, can make erasing the debts they owe more difficult before the interest rate increases. Obviously, if a balance transfer card only has a low interest rate for a set period of time, it provides little help to a cardholder to keep debt on that card until the rate increases and beyond.
Obviously, cardholders who have used balance transfers can benefit by paying off their credit card balance as quickly as they can, and ideally not acquiring further debt during this timeframe, as this is where many troubles arise. Cardholders who feel they may be unable to control their spending or cannot budget in a way that allows them to erase their debts in a timely manner may have to avoid a credit card balance transfer or seek out credit counseling which can help find solutions to their credit card debt difficulties and provide a repayment plan which can help them better manage their personal financial life.