Over the past weeks many consumers have turned to credit cards, particularly those offering balance transfer options, as there are new opportunities being made available in the area of unsecured balance transfer credit cards that may help some consumers pay off other debts at a much lower overall rate. Yet, advisers who are talking with consumers about these particular credit cards often suggest that the first place to start is by simply comparing rates, fees, and what each card entails. As of the week ending June 10, rates on these balance transfer cards have averaged around 12% to 16% but consumers must understand that these averages are not always around the low rate they may receive, and this is where research must be done further.
Perhaps though, we should begin by understanding that consumers may not always benefit from a balance transfer credit card, no matter how attractive the offer may be. Men and women who are looking for ways to consolidate debts on a balance transfer card may see that this rate range of between 12% and 16% is much lower than average rates on their other forms of their debt that are currently outstanding, but balance transfers are not always beneficial for a consumer looking to consolidate their debts.
Careful consideration must be made by each consumer and how a balance transfer card would impact their personal financial life, as there are some cardholders who may be in a position where they can either not pay off this consolidated balance in a timely manner, which could lead to higher overall costs, or some may simply be in a position where their debts can still be combated separately and erased more quickly. These aspects of debt relief must be explored before any credit card is chosen, but if a consumer finds that they are in a position to combat a higher principle amount associated with a balance transfer card, this is where research must go into the area of interest rates, fees, and other requirements.
Many reputable financial institutions will often offer a low introductory period or may offer 0% interest for a set time, during which consumers can pay off their consolidated balance without having to worry about these charges. Yet, factors like a balance transfer fee must be looked for on these credit card offers and there are some financial institutions that may require that consumers use their card in a certain way, by making a minimum amount of purchases for example, before this low rate will remain in place.
While there are still consumers who have been inquiring about the benefits of balance transfer credit cards, even though these cards have been used by consumers over the past months as a way to help pay down consumer debts from multiple sources, potential cardholders need to realize that even though there are many advertisements for these particular types of cards that are currently available, exploring all aspects of debt relief or even other forms of debt consolidation should be a part of the consideration process that each consumer conducts before making a decision on how to combat their debts.