Transferring debt between credit cards
Transferring debt from one credit card to another can be one way of helping you to manage your debt and pay it off quickly. This is known as a balance transfer. There are many credit cards on the market that advertise 0% on balance transfers. If you find that your current credit card rate is too high for you to make an impact on reducing the balance, then you may want to consider transferring your balance to a credit card offering a 0% introductory offer.
If you are currently being charged a high interest rate on your card, and you are unable to make a dent in the balance because of it, you will find that you will benefit greatly by switching cards. Before you switch cards, you will want to ensure that you are eligible for the offer. If you are, then you will want to find out how long the 0% interest rate is being offered for. Some companies offer a 0% interest rate on balance transfers for 3 months, 6 months, or even 12 months. So it will pay off to shop around and find one that will offer a longer interest rate period.
Another thing to look out for when comparing offers is the handling fee that credit card companies will charge on balance transfers. Although the interest rate may be 0%, the company will still charge a percentage for handling fees. Often these fees can range from 2%-4% on the total amount being transferred. You will want a card that will offer little or no handling fees on your balance transfer. You will also want to be aware of any additional charges that the card company may charge you, and make sure you are aware of the interest rate that will be charged once the introductory rate offer expires. Often the interest rate can be extremely high, so be aware of them.