Business & Finance Credit

The Perils of Credit Card Balance Transfers

For people who could not seem to manage their finances, they end up getting into debts.
This is especially true to those who have accumulated too many debts that they can no longer handle the problems anymore.
In reality, 81% of the households in the U.
S.
today have at least one credit card.
But sad to say, out of this percentage, it was reported that the average credit card balance that they accumulate is $8, 387.
The point here is that if these people will not trim down the balances that they accumulate on their credit cards, chances are, they will really get into bigger trouble.
When that time comes, the only way to correct the problem is to employ drastic solutions such as credit card balance transfers.
Balance transfers simply means to transfer the remaining balance in the credit card to another card in order to eliminate the presence of a big interest rate.
Usually, people opt for credit card balance transfers so that they can get a new card with lower interest rate.
The "low interest rate" features of most credit cards who offer balance transfers are actually known as teaser rates.
These credit card companies offer much lower rates so as to entice people to transfer to them.
What these people do not know is that most credit card companies that offer low interest rates for balance transfers are actually applying the interest rate from the day the consumers had transferred their balances.
This goes to show that with credit card balance transfers; there is actually no "interest-free" time.
Another thing is that the low interest rates that credit card companies usually offer when transferring balances are only good for a certain period of time, usually, within a 6-month period.
That means when the allotted period is finished, the regular interest rate charges apply.
Moreover, the rules in credit card balance transfers, when it comes to late payments are much stricter.
For instance, if a person fails to pay his or her due payment on time, the low interest rate is instantly replaced by a higher one.
What the consumers do not realize is that the low interest rates are only good on balance transfers, but once they have made some purchases, higher rates will be applied.
These are all stipulated on the fine print.
The problem is that most of the credit card users do not take highly of the things written on the fine print.
Another problem with most credit card users who opt for balance transfers is that they have this thinking that their debts are paid off.
What they do not realize is that the process is simply transferring the balances and the debts remain the same.
This is because most of the credit card companies that offer balance transfers use the phrase "pay off your balances on other cards" in their advertisements.
SHARE
RELATED POSTS on "Business & Finance"
Have You Heard About the Credit Card Bill Stimulus Package and How it Can Help You?
Have You Heard About the Credit Card Bill Stimulus Package and How it Can Help You?
Credit Repair Service - Is it For You?
Credit Repair Service - Is it For You?
The FTC Provides Resources To Help Consumers Get Out Of Debt
The FTC Provides Resources To Help Consumers Get Out Of Debt
The Short Cut to Credit Card Success - How Credit Comparison Tables Can Half Your Research
The Short Cut to Credit Card Success - How Credit Comparison Tables Can Half Your Research
Fix Your Credit Report Errors
Fix Your Credit Report Errors
Credit Cards with Zero Interest
Credit Cards with Zero Interest
How Business Credit Can Help in Growth of Your Business
How Business Credit Can Help in Growth of Your Business
The Mystery of Credit Card
The Mystery of Credit Card
A Bond Co-Signer's Rights
A Bond Co-Signer's Rights
Canceling Credit Cards and Credit Scores
Canceling Credit Cards and Credit Scores
Most Common Credit Repair Myths Debunked
Most Common Credit Repair Myths Debunked
Credit Counseling - Not Because You're Crazy, Either
Credit Counseling - Not Because You're Crazy, Either
Credit Cards For Poor Credit
Credit Cards For Poor Credit
Credit Card Approval - Some Simple Hints
Credit Card Approval - Some Simple Hints
Low Interest Balance Transfer Credit Cards - Is it a Great Deal Or is it a Trap?
Low Interest Balance Transfer Credit Cards - Is it a Great Deal Or is it a Trap?
Instant Approval Credit Cards And Why They Are Highly Beneficial
Instant Approval Credit Cards And Why They Are Highly Beneficial
Credit Card Debt Relief and FICO Scores
Credit Card Debt Relief and FICO Scores
The ‘80/20’ Rule in Ghana’s Banking Industry, is it Helping Us?
The ‘80/20’ Rule in Ghana’s Banking Industry, is it Helping Us?
Your Credit Card & the Interest Charges - Do You Really Understand the Interest Calculations?
Your Credit Card & the Interest Charges - Do You Really Understand the Interest Calculations?
3 Credit Mistakes That Can Ruin Your Credit Fast
3 Credit Mistakes That Can Ruin Your Credit Fast
How to Get a 740 Credit Score
How to Get a 740 Credit Score
Your Credit Report and Credit Score Explained
Your Credit Report and Credit Score Explained
Debt Settlement Claims - Take All Big Statements With a Pinch of Salt
Debt Settlement Claims - Take All Big Statements With a Pinch of Salt

Leave Your Reply

*