Credit Card Options With Debt Consolidation–Current Costs To Consumers For Balance Transfer Credit Cards

Here in the week beginning July 11 there are relatively few changes that have been seen in terms of balance transfer credit card rates that consumers may be able to acquire in the hopes of consolidating credit card debt. Currently, some average rates are being tracked at around 16%, while others are falling in the 12% to 13% range, again on average, but what consumers need to focus on when looking at cards that offer a balance transfer option are aspects of their chosen card which may go beyond a simple interest rate.

Make no mistake, the rate that a consumer receives a card, particularly when they are opening a new line of credit specifically on a card for balance transfers, will be important since a consumer may see incredibly high overall costs if they do carry a balance on these particular cards. Yet, the aspect many consumers fail to overlook during this part of the credit card research and application process is when it comes to fees or introductory rates that may be seen on these cards that are, once again, being billed as balance transfer cards which can help consumers consolidate various debts from other obligations.

The truth is that there all are a variety of credit cards that may also offer a balance transfer option, and this can be beneficial if a consumer may be more helped by a new credit card that may allow them to participate in a rewards programs, gain airline reward points, or simple cash back opportunities, as some lenders that focus on these particular aspects of a credit card may also allow a cardholder to transfer balances and consolidate debt as well, so this needs to be taken into account during a consumer’s research on these types credit.

Since a cardholder may be able to get a very affordable interest rate on different types of cards that are available, looking at their needs and what they plan to use this card for will be essential before opting to commit to a particular credit card, as consumers who are simply looking to get a new credit card and transfer balances may find that they are facing potential financial difficulties, as this can be a sign that a consumer is simply moving debt around without combating the problem.

Also, there can be sizable fees and restrictions associated with cards that are specifically designed to offer these balance transfer options, as a low introductory period may expire if certain conditions on a card are not met or, in some cases, consumers may have to keep a certain balance or make a minimal amount of purchases on their balance transfer card, which will obviously increase the principle they owe after they have consolidated other debts and this could lead to a longer repayment timeframe.

If a consumer can erase the total amount due on their card before the low introductory interest rate expires, it can be helpful in their debt relief pursuits, but consumers who feel these opportunities to be helpful need to understand that a balance transfer option on a credit card will not necessarily solve their problems, in terms of various debts, but may end up costing more over the long run. Because of this, simply reviewing an interest rate offered on a card is not enough and consumers must also look at requirements to keep a low introductory interest rate, the fees on transferring balances, and simply what their interest rate may increase to after they have gone beyond this introductory period on a new card.