Low Balance Transfer Credit Cards

Are you finding that the interest rate on your current credit card debt is a bit too high? If that is the case, you should consider transferring your debt to a low balance transfer credit card.

Low balance transfer credit cards are useful when your debt balance is going to take more than a couple of months to be paid in full and you don’t want to pay high interest rates.

By paying a lower rate of interest you can reduce your debt balance faster since a lower proportion of your repayment is being allocated toward the interest. For many consumers this reduces the pressure of trying to meet high repayments, but it is important to remember that low balance transfer cards are often only available for a limited period, so it is in your own interests to attempt to pay the debt within the low balance time frame and before the low interest rate reverts to the standard rate.

If you decide that a low balance transfer credit card would suit your needs it is worthwhile shopping round to look at the different deals on offer. These can vary from 0% interest for periods up to 6 months or a low rate interest offer that is available for 12 to 15 months.

But you need to weigh up all your options first as the 0% is not always the best deal for you just because it is the lowest interest. If you are confident that you can pay your debt in full within the 6 months then by all means take advantage of the 0% offer but if you can’t meet that deadline you may find the interest rate that applies after the 6 months is higher than you bargained for.

When you know that your debt can take up to 12 months or longer to pay you would be better advised to look at the low interest rate option, which over the long term will give you more savings on the interest you pay.

You will also need to check what fees if any are payable with the balance transfer offer, the most common ones being an annual fee or a balance transfer fee. If these are exorbitant they might well exceed any savings that you are hoping to make in interest so it is a good idea to do your math first, before you make any final decision.

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