Credit card debts can be a headache at times. You have taken a credit card and supposedly you have failed to make the timely payments. Due to this error, you have created a mess and now you are paying a heavy interest to the credit card issuing company every month. You are incurring a loss in the long run and this is painful. There is a way out to cut short the credit card debts. The method is called a balance transfer.
Balance transfer method
You have created a pile of credit card dues but now you want to get out of the money trap. Your credit card issuing company is charging you a heavy interest rate. The need of the hour is that you clear the outstanding dues of the existing credit card. You can take a new credit card with a balance transfer facility and clear the debts of the previous credit card. The balance will be transferred within 7 working days and the credit card debts will be cleared in the previous credit card.
Things to remember
Before making the switch to the new credit card, here are a few important points you should remember.
1 . There are several credit cards issuing companies that offer 0% APR on the balance transfer amount for the first few months. Keep in mind that the new credit card should be used for debt repayment only. Do not make any additional purchases. Making additional purchases will just increase your worries and financial burdens.
2 . Many credit card companies charge 0% APR in the beginning but later they start charging a very high rate of interest. You should verify the APR at the end of the promotional offer and plan according to the changes. You should keep this parameter in mind and then make your switch to the new credit card.
3 . You must finalize the minimum amount and the maximum amount of the balance transfer allowed by the credit card issuing company. These vary from company to company and you should check these parameters before finalizing the payment. In general, the company allows a balance transfer of around 75% of the credit limit available on your card.
Credit card debts can be frustrating but there is always a way out. Make sure you adhere to the above-mentioned points and control your purchases.