What Is A Credit Card Balance Transfer?
Posted August 6th, 2009
and last modified January 14th, 2010
If you are struggling with mounting credit card debt, then a credit balance transfer could be the answer to your prayers. Credit card balance transfers offer struggling consumers a way out of their financial situation and help them reclaim their lives in the process. Read on to see how it all works.
How does a credit balance transfer work?
In its simplest form, a credit balance transfer is the act of transferring your existing credit card debt from all your existing cards onto a low rate balance transfer card. One such card is the ANZ Low Rate MasterCard that offers clients a 0 per cent interest rate for a full six months. Plenty of time to sort out your debt and paying it down to smithereens – e.g. nothing.
Why an interest-free period (grace period) is good for you.
Besides the obvious, (you pay no interest for the stated period,) you actually have a huge advantage with your new balance transfer credit card: You have the powers to pay down your debt considerably or even better, pay it off for good. Six months is a long time, especially if you can pay all your excess income into credit card debt. You’d be surprised the difference it makes on the bottom line.
By being strategic and committed for the short term ie. six months you can potentially save thousands of dollars in debt for life.
It gets even better than that!
Many balance transfer cards give you bigger grace period than six months. Cards like the Citibank Silver Credit Card offer a balance transfer period of 12-months for a low 2.9 per cent balance transfer rate. So if you need a little more time to get your finances organised then you can do so with this card.
Not enough time? How about getting a …
Balance transfer credit card for life!
If you have a large debt that is impossible to pay off within 6 to 12-months then the Citibank Platinum Card offers the best value for your money. With a low 4.9 per cent balance transfer rate you won’t find a better deal.
How to get the best deal from a balance transfer?
Getting a good deal is essential because any money lost in the process is money lost double due to the chance of paying interest longer. The following information will help you to pay off your debt faster with less stress:
- When opening a balance transfer account, be sure to close your old account and cancel the old credit card
- Choose a card based on your realistic expectations of the time needed to pay off your debt.
- Avoid cash advances at all times when paying off debt because these cost you dearly.
- Check whether you need to pay a balance transfer fee when opening the new account. Some institutions charge a fee.
- Make sure you understand all terms, e.g. annual fees, balance transfer rates, grace periods, etc.
Change your life now, opt for a credit balance transfer and clear debt sooner than later.
Related posts:
- Is There A Limit To How Much I Can Transfer To A 0% Balance Transfer Card?
- Combine Credit Cards with a Balance Transfer
- 2 Questions To Ask Before Applying For Balance Transfer Credit Cards
- How Much Is The Monthly Repayment On A Life Of Balance Transfer Card?
- Compare Life Of Balance Transfer Credit Cards
- How Do Life Of Balance Transfer Credit Cards Work?
- What Does A Life Of Balance Transfer Really Mean?
Show Comment Form
Editor's Choice: Our Top Credit Cards
HSBC Credit Card
0% for 6 months Balance Transfer & No Annual Fee
Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.
Suncorp Clear Options Standard Visa Card