In a perfect world, you’d have no credit card debt. You would use your credit cards as often as you like, pay them off in full each month, and never worry about falling behind.
But back in reality, you know that this isn’t the way things always work out. Even if you try to protect against it, you could one day find yourself swimming in credit card debt.
Should this happen, it’s vital to implement a plan for getting your finances back on track. And in many cases, a balance transfer credit card is the best way of doing so.
Here’s what you get with a balance transfer credit card:
1. Consolidate Your Payments
A balance transfer credit card is most powerful when you have more than one credit card balance. This allows you to consolidate them, thus making it easier to manage.
You’re left with one account and one due date. Gone are the days of having to worry about multiple due dates and minimum payments.
If nothing else, consolidating your payments will take some stress off your plate.
2. Save Money on Interest
If saving money is what you’re looking to do, a balance transfer credit card once again has you covered.
Get this: most balance transfer credit card offers come with an introductory zero percent APR. This typically lasts anywhere from 12 to 24 months. With no interest, all the money you put toward your debt reduces the principal balance. Nothing goes toward interest.
Tip: make sure you know what the interest rate is after the promotional period ends. This
3. Better Terms and Conditions
Just because you have a credit card balance doesn’t mean you have no choice but to stick with your current issuer.
If you don’t like the terms and conditions, consider making a change with a balance transfer credit card.
Tip: compare the terms and conditions of your current card against the offer you’re more interested in. This will ensure that you’re upgrading, as opposed to settling for more of the same.
Final Thoughts on Balance Transfer Credit Cards
A balance transfer credit card isn’t the right financial tool for everyone, but it could come to your rescue at just the right time.
If the benefits above pique your interest, make a list of three to five balance transfer credit cards that you want to consider. You can then compare the pros and cons, all while keeping in mind what you’re trying to accomplish.