In Order To Do That, They Came Up With Several Schemes To Make Their Credit Cards More Attractive Than Those Of Their Competitors

Category: Finance, Credit.

Debt consolidation is a term you ll hear often in the adverts for loans- especially home loans.

It s a logical leap- except for one thing. The idea is to take out a loan large enough to pay off your credit cards and other loans, then pay off the loan at a lower interest rate than you were paying on the credit cards. It works even better if you use the lowest interest rate loan available- 0% balance transfer credit cards. 0% balance transfer cards were the product of a competitive marketplace- the credit card marketplace. In order to do that, they came up with several schemes to make their credit cards more attractive than those of their competitors. After years of growth in the credit card market, the providers found themselves in the position of having to entice customers from each other in order to keep on growing their market share. Balance transfer credit cards are specifically designed to get you to shift your existing balance from one credit card company to another by offering you a better deal. The Benefits of Credit Card Consolidation with Balance Transfer Credit Cards.

And while 0% balance transfer credit cards are a bit more scarce than they were two years ago, they do still exist- and they ve been joined by other low interest balance transfer credit cards schemes. There are a number of benefits to taking advantage of a balance transfer scheme to get control of your credit card debt. If you ve been carrying half a dozen balances on higher interest credit cards, chances are your minimum monthly payment doesn t even nibble at your outstanding balance. Low( or no) interest slows down the mounting of your debt. That s because credit card interest rates are designed to KEEP you in debt, not get you out of it. One monthly payment makes it easier to make the payment on time. By moving all of your high interest balances onto one low interest card, you can attack it more directly and keep it from spiraling completely out of control.

Instead of remembering half a dozen different payment due dates, you only have ONE. Having one credit card and one monthly payment lets you concentrate your efforts and apply a larger chunk of money where it counts. No more worries about missing or late payments because one of your credit cards fell off the radar. Add up all the minimum monthly payments that you re making now. Chances are that the amount of money you re currently paying out to meet all of your minimum payments will be far above the minimum monthly payment on a balance transfer credit card- which means that with every payment you ll be hacking away at the outstanding balance and making your way toward being debt- free. Then compare balance transfer credit cards by minimum monthly payments to see how it stacks up to your current monthly payment. How to Compare Balance Transfer Credit Cards.

While 0% balance transfer cards still exist, the days of no- strings 0% cards are fading away. If you do the math and decide that a balance transfer credit card is the right decision for you, then take the time to compare balance transfer credit cards and find the best one for you. Most balance transfer credit cards have certain limitations and requirements for their use. Once you ve transferred all your balances to one card, be careful not to run your other cards up to limit again. You can check out balance transfer credit cards on offer at comparison sites to compare the various terms and find the balance transfer card that works best for you. Your best course is to keep one credit card active for use in emergency- or for your everyday purchases- and pay off that card in full every single month. That way you won t find yourself in the situation of paying down double the debt because you ve run it up all over again.

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