As many Americans know all too well, credit card debt is extremely difficult to pay off. As payments are made, interest continues to accumulate and be compounded. At the same time, new charges can also add to a cardholder’s balance. Fortunately, credit card balance transfers allow customers to take a break from their interest payments in order to accelerate the process of emerging from debt. The problem is that many credit card holders fail to take advantage of these offers.
Here are the three most important reasons why those with credit card debt should apply for a balance transfer offer as soon as possible.
- Promotional Balance Transfer Offers Can Extend For Very Long Lengths of Time. Most people who owe credit card debt will find that it can take them years to pay it all off. What they might not realize is that there are many promotional balance transfer offers of more than 12 months. Offers of 12, 15, and even 18 months of interest free financing are not uncommon in this highly competitive field.
- No Fee Offers Have Returned. In the past, cardholders frequently had their choice of several 0% promotional balance transfer offers, with no fees. In the last few years, all of those offers disappeared, and every 0% balance transfer required a fee equal to 3-5% of the amount transferred. Yet more recently, a few limited time only no fee balance transfer credit cards have both returned to the market. In the past, cardholders had to weigh the lure of a 0% promotional offer with the cost of a balance transfer fee, but not anymore.
- Why Pay Interest? Those who carry a balance on their credit cards are paying interest each month. Unlike interest on home mortgages or student loans, the interest paid is not even tax deductible. Furthermore, credit card interest rates tend to be higher than the rates offered on secured loans such as those for homes or autos. Yet, unlike with those loans, cardholders simply don’t have to pay interest when they take advantage of the numerous promotional balance transfer offers on the market. By opening up a new line of credit with a 0% financing rate on balance transfers, cardholders can continue to pay down their existing balances without incurring additional interest charges.
No one likes paying down their credit card balances, but by choosing a 0% promotional balance transfer offer, cardholders can at least enjoy an extended respite from credit card interest charges.
For information on the best balance transfer credit card offers of 2012, visit the comparison section of Smart Balance Transfers.