There are just too many offers on low interest rate balance transfer credit cards nowdays. It's so hard not to give in to all these tempting offers and a wary consumer will always study all his options before jumping into any decision.
One great advantage of low interest rate balance transfer credit cards is that you are given the chance to transfer your existing credit card balances to a new card (more often than not, at a better rate). The perks often follow such as incentives (for transferring your balances from your former bank to their bank), the lowest interest rates in the market, and other bonuses. These balance transfer credit cards can be a great tool to lower your debt and payments each month-just be sure to study all the choices that are given to you before you sign up for any deal.
Balance Transfer Credit Cards
Low interest rate balance transfer credit cards are credit cards which will allow you to consolidate your credit card debts into one (at a much lower interest). This is also applicable for people who would only want to transfer a single credit card balance.
Transferring your balances to another bank will result in easier and reduced payments each month. Again, always remember to read the terms and conditions and never immediately give in because you saw an introductory offer of 0% for 6 months or more.
The most important aspect to consider is the real interest rate or the APR. The offer will go up to once the introductory rate has expired. Remember that you could end up paying off more in the end if you have not studied the interest rates prior to signing up.
What to Do
You can choose to pay a reasonable amount of your total balance before the interest rates go up just so you can avoid the problem of paying more. You should also make sure that you pay for your monthly payments on time; doing so will assure you that your rate would not increase. Being a responsible payer and a good manager of your credit card accounts are the best ways of countering financial burdens.
Low interest rate balance transfer credit cards are the best cards to consider if you have already mapped out a financial plan which you would religiously follow. With these card, you will not have to pay for multiple credit cards with different interest rates and different payment due dates. These types of credit cards often come with low initial interest rates, or better yet, no interest rates! Balance transfer come-ons are often 0% APR for the first 6 months or even up to one year. The 6-12 month period should be enough for you to organize your finances and lower your debt. For the financially adept, this is a chance to improve your credit standing.
Balance transfer credit cards also often give grace periods to pay down or pay off balances without any extra charge. This means that with proper financial planning, you can be finally free from a large amount of debt or have a chance of paying smaller amounts when the higher interest rate eventually becomes active. For people who are smart in dealing with balance transfer credit card offers, these could actually become a great advantage to their financial standing.