Balance Transfer Credit Card Offers
Save money & reduce debt with Balance transfer offers
Cutting back on the interest expense on your current card is the most obvious way you can save money with a balance transfer credit card, just compare the interest rates. While balance transfer rates can be as good as 0% interest for 6 months, average credit card interest rates can range from 10-20%. Notwithstanding limited time attached to balance transfers, you can still make huge interest savings if you follow the terms of the card and repay the balance before the end of the balance transfer term. For example, on a normal credit card balance of $5000 you could be paying between $750 and $1000 in interest per year. If this amount was transferred to a 0% or 3% balance transfer credit card and it is paid off before the expiration of the balance transfer term then you will pay between $0 and $150 in interest expense instead. Clearly if used correctly and sensibly, a balance transfer credit card is not only a great way to reduce your interest expense, but by limiting the compounding of interest it will help you repay your debt faster.
Use a balance transfer credit card to consolidate debt
People who carry more than one credit card may find that a balance transfer offer is their answer to expensive annual fees and credit card interest expenses. Most balance transfer offers allow you to elect unlimited balance transfers at the time you sign up for the card. You are thus able to transfer all the outstanding debt balances on all your other cards onto the balance transfer credit card. Not only will you be able to keep on top of your finances by having all your credit card debt in one place, you will also save money by paying the lower balance transfer rate and save on the costs of carrying an unnecessary number of cards by eliminating the annual fees on your extra cards.
Published: 6 December 2010