Unfortunately, many people have found themselves in financial positions they never thought they would have to deal with thanks to the financial recession that we have been dealing with for the past few years. With charge card bills mounting, many consumers have found themselves looking into the different debt relief options they may have. Not being ready to close charge card account accounts and take negative hits on credit scores, many consumers decide not to move forward with debt settlement or debt consolidation. However, what other option do these Americans have for charge card account debt relief.
One option that is often overlooked is balance transfer credit card accounts. I know what many people may be thinking. If you have charge card debt, why would you want another credit card account? Well balance transfer charge cards although disguised as regular charge card accounts have special debt relief potential. As a matter of fact, balance transfer credit cards can be used as a form of debt consolidation that doesn't require the closure of any credit card accounts! No that I've got you interested, let me tell you how this works.
First off, balance transfer charge card accounts have their name for a reason. These charge cards allow Americans to transfer balances from high interest rate credit card accounts to the one balance transfer charge card account. In most cases balance transfer charge cards will come with great introductory and long term APRs, however, there are a few things people should look at when shopping for balance transfer charge card accounts:
The first thing that Americans will want to look at when shopping for a balance transfer credit card account for debt relief purposes is the long term interest rate. Although introductory APRs are nice, they do not last forever. Consumers should make a list of the balance transfer credit card accounts they find with acceptable long term APRs first.
Once this list is made, consumers should go back and look at introductory APRs and introductory periods. Introductory APRs are lower interest rates that are generally used as bait to attract new Americans to a charge card product. These interest rates can range from 0% to 6% and usually last between 6 and 12 months. Consumers should now take the higher introductory APR balance transfer charge card accounts off of the list that they made earlier. This should leave them with only a few offers.
Now it is time to compare transfer fees! With the offers people have left on their list, it is time to compare the transfer fees the bank will charge consumers to transfer a balance using that specific charge card account. Transfer fees can generally be between 3% and 6% of the amount being transferred. However, before not using a card for high transfer fees, it should be compared by its long term and introductory interest rates. Sometimes, it is worth paying a higher fee up front for more long term savings.
Finally, once a charge card is chosen, people should apply for and transfer all of their high annual percentage rate debt to the new balance transfer charge card. This will reduce the overall interest the consumer will have to pay for the debts borrowed against credit card accounts in the past and has already provided thousands of consumer the relief they deserve!
This article was written by Joshua Rodriguez and is brought to you by:
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