Paying off credit card debts is a major concern for numerous Americans but those who carry a balance on their credit cards or suffer under the weight of multiple credit cards might be in a position where either finding a lower repayment option or consolidating may be beneficial if done properly. However, recent opportunities to take advantage of balance transfer credit cards that will allow for lower repayment costs to be met or simply switching to a low interest credit card are a few of the avenues that consumers have taken when it comes to erasing what they owe to various creditors and becoming free of their credit card debt.
One way that consumers have been able to lower the overall repayment costs they have had to meet is through balance transfer credit cards which offer consolidation options at a low rate, and for some consumers who were able to take advantage of a low introductory period that offers 0% interest, proper planning has allowed for these individuals to repay their debt at no interest. While there are some credit card rating websites that state balance transfer cards may range, in their average interest rate, from anywhere between 12% and 16%, some consumers fail to look at these rates as they are only focused on a current 0% introductory rate that may be offer them the option to consolidate credit card debt.
When, for example, a balance transfer credit card opportunity is available, consumers need to not only look at the fees that will be associated with transferring a balance, but the time that a low introductory rate is offered so that they can avoid problems with paying off their debts. Also, consumers must make sure that they know what rate they will be giving once this introductory period ends, as some individuals may not plan properly so that they can erase their debt before a low intro rate expires and could be stuck paying on a consolidated balance at a higher interest rate than they had figured.
However, consumers must also understand that the interest rate that is given on a balance transfer card or even a low interest credit card will heavily depend on their financial position and credit rating. Yet, when it comes to using credit cards to pay off multiple credit card debts, low interest cards that may offer a balance transfer option or newly advertised credit card balance transfer opportunities have been helpful for some, but they are not in every consumer’s best interest.
For this reason, consumers who feel that they will be able to pay off their credit card debt and meet lower repayment costs overall must research these offers as, in some cases, they are simply too good to be true. While, again, some consumers have been able to simply consolidate their credit card debts onto one card, pay off the principal before their introductory rate expires, and eliminate interest rate costs associated with erasing what they owe, some cards may, again, come with a fee or require that a consumer use their card a certain amount of times so that this low intro rate will remain in place.
Careful debt management, reviewing credit card balance transfer offers and requirements, and simply factoring in the costs associated with a balance transfer credit card or simply paying off credit card debts separately through budgetary and repayment habits are all considerations consumers must make before choosing this particular route for paying off their credit cards, as getting lower repayment costs overall may not simply be an option for certain consumers in relation to the credit card offers available for their particular situation.