How Can Balance Transfer Credit Cards Help Me Manage My Debt?

Balance transfer credit cards are credit cards that allow their holder to do simply that: transfer debt from one credit card to another by using the available debt limit on the balance transfer card. Not every credit card allows the holder to utilize this feature. This feature is usually reserved for new credit card accounts and usually only in conjunction with a balance transfer offer specifically assigned to that credit card. If the credit card offer includes a balance transfer option, the application will usually attempt to draw the applicant's attention to it.

Balance transfer credit cards are designed to allow the holder to consolidate all of his or her debt onto one credit card. This is done with the intent of making it easier for the consumer to pay it back. Most balance transfer credit cards come with an introductory interest rate of 0% for a limited amount of time.

This rate is applicable to all the debt transferred to the new card and any new purchases for a certain amount of time. This time will allow the card holder time to organize his debts and while relieving him or her of the worry of having to make multiple payments on multiple credit cards which all come due at about the same time.

Using balance transfer credit cards can be particularly helpful if you have large balances on many credit cards and wish to consolidate them so that you are only making one payment each month. Doing this will give you more access to cash each month while allowing you to pay off your credit card bills at the same time.

Using balance transfer credit cards is one of the best short-term ways to manage all your credit card debt. You will be able to save thousands of dollars each year in interest payments while getting some breathing room as you manage your debts. They can be a very helpful financial tool if they are used properly and wisely.

They are not as easy to get as they once were. In today's financial market only people with very good credit scores are usually able to obtain balance transfer credit cards. If your credit score is poor, using balance transfer credit cards can be an easy way to boost it. If you make your monthly payment in full each month when it is due, your credit score will rise fairly quickly.

Using balance transfer credit cards can help you pay your credit card debts off at a fairly low rate over a fixed term of repayment. It is becoming increasingly difficult to find 0% offers these days but many 1.9% interest rate offers still exist. You must make sure that you repay within the stipulated time, however, or you will find yourself being charged many fees.

Each balance transfer will be charged a fee usually of about 3% of the total amount transferred to the card. You should always transfer your balance as quickly as possible after you receive your new card or the offer might expire.