Currently, cardholders have been able to take advantage of affordable rates on a variety of lines of credit, but there are some indications that average balance transfer credit card rates may have remained unchanged, but some consumers are finding that this average rate may not impact certain cards they are reviewing in the hopes of using one of these balance transfer cards to help them in their personal life. Debt consolidation has been one of the main reasons behind acquiring a balance transfer credit card as consumers are looking to take advantage of affordable introductory rates and potential cost-saving measures that may be available on this particular type of card.
Yet, the overall costs that a consumer may face on these cards may not necessarily make them optimal for every consumer, so it’s because of the various situations in which cardholders find themselves, coupled with the fact that there are also fees that need to be considered as part of the overall calculation into whether a balance transfer card will be right for a consumer, that some men and women who may feel a balance transfer card will be helpful need to take care before committing to a particular line of credit.
Largely, credit card interest rates have remained steady over the past few weeks, but consumers need to understand that when they are looking at these average rates that are reported by a variety of financial resources, this does not mean that a particular rate they see will necessary be what they receive. Factoring in what rate a consumer will receive on the card, not simply looking at the average rate, is something that many consumers may overlook and when a higher interest rate is given they may have higher costs that must be met when making repayments on certain charges or when they carry a balance on this credit card rather than pay off their purchases in their entirety.
Specifically though, when it comes to using a balance transfer credit card to consolidate debt, consumers often find that they may have to pay a percentage of what they transfer onto this credit card, and that may be problematic for some in that the amount they pay in fees could offset any benefits that are gained by being able to pay off this consolidated debt during a period where there may be little or no interest charges. Currently, many balance transfer credit card rates are being tracked at around 12% to 16%, but again, this is not guaranteed for a particular consumer and cardholders must look at their individual situation in order to better figure what rate is likely to be offered and what overall costs will come if one of these balance transfer fees is levied against them when they use this card to consolidate debts.
As always, financial advisers also caution consumers not only against costs that may arise on these credit cards and using a balance transfer option, but consumers must be careful not to acquire more debt after they have consolidated multiple obligations onto this balance transfer card, as some consumers use these opportunities to simply move debt around rather than taking the opportunity to eventually pay off a high amount of debts at a lower cost so that they can be relatively debt free in terms of unsecured debt obligations.