Balance Transfer Card Current Rates Relatively Unchanged But How Are Consumers Dealing With New Offers

11/08/2011
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As there are continued offers being made for balance transfer credit cards and arguments that state more consumers to be considering these cards as a way to get a handle on their debt, rates that are being seen have remained relatively unchanged over the past few weeks but when it comes to using one of these balance transfer opportunities, consumers are being advised by professionals that in dealing with new cards and offers that may come their way can be much more complex than simply consolidating debts through a balance transfer. Numerous balance transfer cards often center around attracting consumers with a low introductory rate, which has been used to the advantage of some cardholders, but consumers do need to keep in mind a few aspects of balance transfer cards that may be unhelpful for their debt relief needs.

Understandably, many consumers will use one of these balance transfer cards in the hopes of consolidating their debt and then paying this debt off at a much lower rate, and since balance transfer credit cards rates currently range from anywhere between 12.77% to 16.21%, it’s safe to say that consumers could see rates in this range or even higher, depending on their financial position. Yet, consumers do also need to be aware of the introductory rate they receive, the timeframe during which this rate will be offered, and how they may use these factors if they feel a balance transfer credit card will be best for their situation.

To begin with, consumers must make sure that they understand how long their introductory rate may last, which can help them calculate how much time they have to pay down their debt and will ultimately give them the answer of whether they can pay off a consolidated balance before an introductory period ends.  This is where some borrowers tend to avoid the big picture as getting a consolidation option at a low rate or even 0% interest is attractive but if a cardholder is unable to pay off their debt during the introductory period and must pay on their consolidated debt at a higher rate, it could lead to payment problems in the future.

Simply put, looking at costs related to balance transfers is highly stressed by financial advisers as some consumers are may not factor in the costs of balance transfer fees, when they are present, versus how much they may be able to save with a balance transfer card. If a consumer is able to pay off their debts separately at a lower cost when transfer fees and interest rates are factored into the equation when using a balance transfer card, obviously it will benefit consumer to opt for the route of debt relief that is more affordable, but making sure that the consumer will get an affordable rate on the card so that if they do have to pay interest on their consolidated balance it will not be substantial.

It goes without saying, avoiding acquiring debt on other credit cards after a balance transfer has been used, keeping an eye on the future rate that may come about after introductory period has expired, and simply working to pay off this debt as quickly as possible are all beneficial to consumers when a credit card with a balance transfer option is indeed used, it does also need to be remembered that there are alternatives to balance transfer card that consumers may benefit from when it comes to paying off multiple debt obligations.

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