Balance transfer credit cards are one of the many types of cards that are currently being advertised to numerous consumers, but balance plans for cards are particularly being singled out due to the advantages they can have from offering debt repayment and consolidation opportunities and other benefits that cardholders may gain if they use one of these particular types of credit card opportunities. Understandably, there have been many consumers who are still feeling the setbacks from the recession and other economic difficulties that may have either created a situation where a consumer could not afford to buy on credit or simply were unable to acquire an affordable card due to their credit rating.
However, these balance transfer credit cards have been used by numerous consumers who were fortunate enough to find one of these offers as consumers who have multiple credit card debts or outstanding debts, like those who are still paying off holiday purchases, can benefit from consolidating debts onto this balance transfer credit card as many offers are allowing consumers to take advantage of very low interest rates. Recently, Kiplinger.com reported on this issue and stated that, “Of the estimated 2.5 billion solicitations mailed in 2010, 71% included a 0% balance-transfer offer lasting an average of 12 months.”
Cardholders who may receive one of these offers, which could potentially allow them up to a year to repay various debts at 0% interest, have felt that these balance transfer cards are an incredible offer as many major financial institutions are presenting these opportunities to numerous individuals, but consumers need to take care if they do decide to take advantage of one of these balance transfer credit card options. Understandably, consumers who may be able to erase their debts at 0% interest by consolidating multiple obligations onto a balance transfer card could save a great deal of money in the long run, especially since they will not be combating an interest rate.
Yet, consumers need to take care to read the fine print of these balance transfer credit card offers as there are some lenders who may require that certain fees be made or constrain the cardholder in one way or another, which could cause problems if there is a sizable amount of debt remaining on this balance transfer credit card when the introductory interest rate expires. While most reputable organizations who offer these cards will allow cardholders to transfer balances onto this card and simply begin the process of paying them off, there are again some card offers that may charge excessive fees to transfer balances or they may simply give cardholders the false impression that they have actually erased their debts, which could lead to some consumers using other cards once again to make purchases.
Consumers who use these balance transfer credit cards that offer a consolidation option and more affordable debt repayment opportunities have been advised to focus on this particular card, if they deem it is appropriate for their situation, and avoid making purchases on other credit cards while they are erasing this consolidated debt. Also, consumers must look at the timeline for their introductory rate as some cards could see a drastic increase after a low introductory rate period has ended, which again, could cause problems if a consumer has not paid down this consolidated debt or may have begun acquiring more debts on their balance transfer card or other sources.