Rates on balance transfer credit cards that are available here in the early days of October may still be able to bring about offers of more affordability for consumers who are looking to consolidate debt on these types of cards, but as this type of card has become popular among certain consumers, there are aspects that must be reviewed that go beyond simple rates that consumers may see. Understandably, consolidation for consumers in general has been one way that many have found more affordable repayment costs when financial problems have arisen or consumers are simply looking to get all of their debts focused into one place, and due to certain aspects of these balance transfer cards this has been more of an option for certain consumers as of late.
Many cards that offer to transfer balances are not necessarily coined as the “balance transfer credit cards” but when a consumer sees these opportunities available many often overlook what may be required beyond the simple repayment of their consolidated debt. While many of these cards are reportedly to be averaging rates of anywhere between 12% to 16%, there are also considerations that consumers have overlooked when it comes to fees or certain requirements that certain lenders may have in place before an introductory rate remains low or even at 0%.
The benefits of consolidating debts on a balance transfer credit card are often centered around the ability of some consumers to pay off their consolidated debt at 0% interest, if they can pay down what they owe within the introductory timeframe, and this is obviously more attractive to consumers than continuing to meet costs on multiple debts and interest rates or even using a debt consolidation loan which will also have a consumer combating interest payments as well. Yet, some consumers may have to pay a percentage of what they consolidate to the credit card lender when they transfer these balances, and there are occurrences where consumers have seen this amount surpass what they would have paid on interest had they kept their debts separate.
If consumers are in the market for a credit card, and they are also looking to consolidate and repay debts, it has been the case that some feel this type of card will be best for their financial aspirations, but even if this is the case consumers have often been counseled to make sure they look at the different types of balance transfer cards available from a variety of lenders. Yet, consumers may also find that there are debt relief options that could be more affordable outside of debt consolidation, or specifically using a balance transfer card for debt consolidation, and financial counselors often stress the benefits of looking into these options as well.
While there are indications that non-revolving lines of credit, like loans, are outpacing credit card debts in some areas, consumers must remember that when it comes to paying down various debt obligations, consolidation through either the use of a personal loan or a balance transfer credit card are not always going to be the best routes that a consumer may have for their situation, so reviewing not only balance transfer credit cards but also various repayment practices that may help consumers pay off debt faster or at a low cost without having to pay for fees like those that may come on a balance transfer credit card could potentially offer more benefits simply in terms of general debt relief practices.