Balance transfer credit cards

Balance transfer credit cards are very popular with people who have a lot of credit card debt. The idea is that you will transfer your outstanding balance to a new card that offers a lower interest rate than the card that you currently have. Often there will be an introductory rate that is much lower than you are currently paying. This will make it much easier for you to get your debts taken care of.

The reason that you would want a balance transfer credit card is that it can save you money by getting you a lower interest rate than you would be paying otherwise. Normally these cards offer a very low introductory rate for balance transfers. If you have a lot of credit card debt this could really get you out of trouble. It is well known that credit cards come with high interest rates and this why it is so difficult to pay them off. Most balance transfer credit cards will offer a very low interest rate, often as low as zero percent for the first six months.

The key to using a balance transfer credit card is to take advantage of the time when you have low interest rates to pay down your debt. Most people pay something around the minimum when they get their credit card bill, that's why they have a problem with credit card debt. With a high interest card if you just make the minimum payment you are just barely covering the interest. If you are going to transfer your balance take advantage of the lower rate to pay down the principal and put as much as you possibly can towards your debt before the higher interest rate kicks in. This is the best possible way to get out of debt.

One thing that you do have to be careful about when you are get a balance transfer credit card is that you don't end up paying an even higher interest rate than you already were. A lot of people are enticed by the introductory rate and don't really pay attention to what the regular rate is when the introductory period is over. This is a huge mistake because if the rate is higher than the rate you are already paying you will likely find yourself with an even worse debt problem.

Finding a balance transfer credit card shouldn't be a huge problem, there are lots of them out there. Ideally you would find one that allows you to transfer your balance with no interest and then offers a lower regular rate than you are already paying. If you have good credit you should be able to find just this. If your credit is less good you will not get terms that are so good. However you should be able to get a lower interest rate than you are already paying.