Credit card debt consolidation options through balance transfer credit cards have been one option that consumers might have turned to as a way to find debt relief like as interest rate offers for new cards are bringing introductory periods of little or no interest, which has led to options for consumers to pay off their debts at a much lower cost, consumers need to carefully review these consolidation options for credit card debt as balance transfer credit card rates will vary, conditions will differ from one lender to another, and not all cardholders may benefit from this type of credit card debt consolidation opportunity.
Yet, many consumers are focusing on interest rates for these balance transfer cards as many credit card lenders are attempting to attract consumers with options like credit card debt relief through a balance transfer option. There are credit cards specifically tailored for this particular type of user, meaning the consumer who simply wants to consolidate their debts and pay off what they owe on one credit card, but even some bad credit credit cards may offer a balance transfer option, so when consumers are researching these balance transfer opportunities for the purposes of credit card debt consolidation, looking at what is required to either keep a low introductory interest rate or fees that may be associated with transferring a balance are aspects of this type of consolidation that consumers must review.
According to websites like CreditCards.com, as of the week of April 27, 2011, balance transfer credit cards had an average APR of 12.78%, while Bankrate.com reported that average rates on balance transfer cards was around 16.09%. However, consumers need to understand that these are merely averages and the specific rate that they get on a balance transfer credit card will differ from one lender to another and will also be dependent upon a consumers credit score and financial position. Yet, what many consumers are being drawn to these introductory interest rates that some lenders are offering, as they feel that when a low rate or even 0% interest is offered upfront, consolidating debt on these balance transfer cards could lead to a situation where a consumer can get out of debt without paying any more interest.
While some have been able to take advantage of these opportunities and erase what they owe in a timely manner, so that debts repaid under these low interest rate offers will allow for lower overall costs, consumers must not only be wary of fees for transferring balances for the purposes of debt consolidation, but if a consumer is unable to pay off consolidated credit card debt on a balance transfer card, they could end up meeting repayment obligations on a higher interest rate after their introductory period has concluded. Credit card debt consolidation is still a major issue for many and certain consumers are continuing to seek out these options, but careful research must be done by consumers so that they will not be drawn into a credit card offer that will not be in their best interest, as there are some who may have to settle for other forms of credit card debt repayment and relief that are outside of these balance transfer options.