Balance transfer credit card rates in the middle of May have been stated to average around 12% to 16% for specific cardholders, and since many men and women still are seeking out a way to consolidate various forms of debt, there are those who feel that this may be the best option when it comes to finding more affordability in their goal of getting debt free. Consumers sometimes fail to look at what the overall costs may be concerning certain activities in their financial life, and as there may be increases in credit card rates from certain lenders or, simply in general in the future, but there are certain aspects of balance transfer cards that these cardholders must review before selecting a particular card, or deciding if this type of credit option is right for them at all.
In March and April of 2011 there were indications that more lenders were in the process of making credit available to more individuals, but reports that have surfaced in May have led many to believe that certain consumers are finding access to credit more difficult. While these men and women who may have trouble getting a credit card are usually those who are in a bad credit position, there may be some who are simply from a low income background who could also have trouble finding balance transfer credit card options that will allow them to consolidate their debt.
Essentially, cardholders who may not have the money they need to handle the responsibility of a balance transfer credit card could find that either this line of credit is closed to them at the present time or the average rates between 12% and 16% could be much higher for their particular situation. Many lenders are worried about the ability of consumers to repay these debts, despite the fact that many are less concerned than in months past. However, consumers must understand that getting a credit card, particularly one of these balance transfer cards that can be used to consolidate debt is not always going to be an option available to every consumer, as these cards often come with low introductory rates or 0% interest up front and, as a result, consumers may go one of two ways with this offer.
One route consumers take would be to use a balance transfer credit card to either pay off other credit cards with much higher interest or consolidate debts by charging off other obligations with this particular card and then a consumer would make payments in the hopes of erasing this credit card balance while a low introductory period is still in place. However, some consumers have recently made the mistake of acquiring one of these cards, consolidating debts, and only making minimum payments while continuing to use other lines of credit or using this particular card to purchase more goods and services.
What this can lead to is higher costs that a consumer must face when an introductory period expires, as many card issuers are beginning to increase interest rates due to the CARD Act, which prevents consumers from being surprised by suddenly increases. However, it’s understandable that the draw of these balance transfer credit cards that may offer debt consolidation options is powerful to certain consumers, but exploring current rates on these cards, comparing offers, and looking at alternatives when it comes to debt relief should be a priority for consumers as, again, this particular type of credit card may not be available to or the most affordable option for every consumer.