Here in July there have been consumers who are looking for cards that offer balance transfer options for the purposes of debt consolidation, but consumers need to understand that there are different types of credit cards that may offer this option, however, the rates that a consumer receives may be quite different from one card to another. Understandably, consumers will also face different rates on a potential credit card that will offer a balance transfer option if they are in a specific range in terms of their credit score, so when it comes to looking for these debt consolidation options, some consumers may have a more limited selection.
Many current credit card averages are reportedly around 14% to 16%, but this is where some consumers get caught up in not realizing that the specifics of a particular credit card will not necessarily offer these average rates and if a consumer finds themselves in a bad credit position, as an example, these rates could be much higher. However, some consumers may look only at a balance transfer card while there are some cards that may be available which offer balance transfer cards but are advertised as a different type of line of credit. Some consumers are looking for a low interest credit card, which is understandable as any cardholder once the lowest possible rate they can get, but some of these cards may offer a balance transfer option as well, but this is where further questions arise.
While the type of credit card a consumer may be looking for will differ from one person to another, there are also financial advisers who strongly suggest that consumers look at why they are seeking out a balance transfer on a credit card at all. Many financial advisers often worry that when a consumer is specifically looking for a credit card for the purposes of transferring balances from other debt obligations they may be implementing poor credit practices as consolidating debt can lead to higher overall costs in some cases, but even if balance transfer options on credit cards are used and the best scenario plays out, meaning that a consumer pays off their consolidated debt at little or no interest, it could still be a warning sign.
Debt consolidation, particularly with the use of a credit card, is not for every consumer and is something that needs to be personally researched as it will be an individualistic decision on the part of the consumer as to whether this particular option is right for their situation. However, some credit cards that offer these balance transfer options will necessitate that consumers keep a specific balance or make a certain amount of purchases while a low credit card rate is still in place, but this can be problematic particularly if the consumer has transferred a sizable principal amount onto the card and is attempting to pay it down while continually making charges.
For this reason, among others, if consumers find themselves in a continuous position where paying off debts seems to be normal, moving it around may not be their best option unless it is to pay off what they owe on multiple obligations once and for all. However, it will depend on a consumer’s financial habits and situation as to whether debt consolidation through balance transfers on a credit card will be best, so if consumers are unsure of whether this form of debt relief is best for them, consulting a professional financial adviser or a reputable nonprofit credit counseling agency may be beneficial in helping consumers sort out any financial problems they may have.