Consumers seeking affordable balance transfer credit card options may have more opportunities at the present time due to the fact that we are seeing continued affordability and rates that may offer a chance for consumers to acquire a card from anywhere between 12% to 16%, but we have also seen some advisers currently looking into this particular area of the credit card business and stating that consumers may benefit from consolidating debt at the present time as well. Yet, there are obviously voices of dissension that have been heard as some advisers feel that not transfer cards could potentially be a bad option for certain consumers, but weighing the pros and cons of current opportunities for affordable interest rates and consolidation will be necessary for consumers who are comparing these cards.
Yet, we have recently seen here in the middle part of October that some credit card lenders are offering a 0% interest rates as an introductory offer to attract more consumers into the credit card business, as some of these major financial institutions and even smaller lenders are seeing fewer defaults in the area of credit cards. However, these cards that are offering these low interest rate introductory offers may not necessarily be billed simply as a transfer card, but may offer a balance transfer option for users who have been able to use this to their advantage in the past.
Throughout 2011 we have seen periods where consumers have been able to use balance transfer opportunities along with the 0% introductory rates to consolidate multiple debts, pay down what they owe before this introductory period expires, which has obviously been one way that consumers have saved a great deal when it comes to interest payments. However, in some cases consumers may not benefit from these new opportunities to transfer a balance and consolidate their debts, as not every consumer will qualify for one of these prime interest rate on a card, which is something that advisers often say is vital when consumers are factoring in the overall costs of this credit card, but there may be certain constraints on how a consumer may use their card in order to keep the 0% interest rate.
Opening a new card for the purposes of transferring a balance can, once again, offer consumers the opportunity to consolidate at 0% interest but consumers need to realize that this rate will not last forever and some may find themselves in a position where they have a line of credit with an unfavorable rate, if they are unable to qualify for one of these optimal interest rates on credit card. Yet, there also credit cards that will offer these balance transfer cards that may fall outside of the average rate on balance transfer cards, as again, a variety of different types of credit cards may offer the opportunity to transfer a balance, but again we have recently seen some advisers speak out against consumers jumping into this type of agreement without forethought.
In the end, consumers who may be able to pay off their debt relatively quickly but would like to do so without facing interest charges have been those who typically benefit from balance transfers, but if a consumer is using these cards to consolidate their debts in the hopes that they can pay off their consolidated charge over time, consumers do need to remember that when situations arise where they can only pay minimum payments, may have to meet a sizable amount fees, or simply are moving debt around rather than focusing on paying it off promptly, alternatives to a balance transfer card may be needed for debt relief.