There has still been some hesitation on the part of banks to lend to consumers, but more are beginning to loosen up their practices and offer credit cards as there are men and women who are in a position at the present time to handle the responsibilities that come with unsecured debt. Yet, consumers are often looking for ways to pay off their credit cards as there have been some indications that the use of credit cards by many consumers has begun to slow since the economy has yet to fully recover, particularly in areas like housing and jobs, so acquiring a great deal of debt through the use of credit cards has not been a practice that some are willing to implement even if they are in a position to meet minimum payments.
Furthermore, some consumers are attempting to pay off their credit card debts with the use of other cards that offer balance transfer consolidation opportunities, as interest rates on credit cards can be quite affordable, particularly when an introductory rate is offered for new cardholders. Yet, today we want to explore if using debt relief options through balance transfers will be beneficial for every cardholder, as June can be a month where cardholders could get themselves into a better financial position by erasing debts through traditional methods or they may take advantage of card offers that are currently available in order to consolidate multiple obligations from other sources.
While low interest credit cards are currently averaging around 10% with balance transfer cards showing an average of 14% to 16%, each consumer’s situation, credit score, and history will be the determining factor as to what rate they get or if certain types of cards are even available. Everyone will obviously opt for a low interest credit card, but some consumers may have to choose other options or settle for a higher interest rate. Yet, what many of these men and women are seeing is that some of these cards are offering a balance transfer option, which can be helpful if properly used and a cardholder keeps close track of their finances during this process.
Ideally, cardholders who select a new credit card, no matter if it offers cash back, rewards, or other incentives, may have the option of transferring balances on this card and many financial institutions are offering incredibly low rates for a set period of time and, in theory, consumers could consolidate unsecured debts or other obligations onto this card and pay off what they owe at little or no interest. The vast majority of consumers who look at these opportunities realize that they can save a great deal of money if they can pay off this consolidated balance before the interest rate increases, but there are some fees and requirements that may make these balance transfer options less ideal for consumers.
For this reason among many others, consumers who feel that using a balance transfer option will be optimal for their situation should only come to this conclusion after careful research, review of their finances, and exploring costs of alternate debt relief strategies have taken place since debt consolidation through a balance transfer can be risky for some. Yet, looking at fees associated with a balance transfer credit card and requirements that must be adhered to so that a consumer can keep their introductory rate needs to be part of the comparison process when looking at multiple card options, so that a card-seeker can get a card that will be best for their situation and not cause financial stress through requirements and costs that may offset any benefits of using a balance transfer to consolidate debts.