Size of debt could be decreased with a balance transfer credit card
One financial industry group has recently suggested that consumers could really benefit by taking out a balance transfer credit card and transferring their higher interest credit card debts onto the card.
Many people will have spent up on their higher interest credit cards over the festive season, and will now be lumbered with debt on which they are paying significant sums of interest. However, taking the right steps could help them to save money on interest.
With the New Year now well underway many people will have made resolutions involving clearing their debts as quickly as possible, and officials from lovemoney.com have said that using a balance transfer card onto which they can transfer high interest credit card debt could go some way towards helping them to achieve their goals, as it means that they can enjoy a generous period of interest free credit without being charged any interest on the balance that they have transferred.
A spokesperson for the group said that many people may feel daunted at the prospect of having to shuffle around financial commitments, but he said that using a balance transfer card to shift more expensive debt onto could release the strain for those that are struggling financially, and the process was a pretty simple and straightforward one with an increase in the choice of balance transfer cards that were available.
He said: “If you have got a credit card at 17 or 20 per cent, try if possible to get your consumer debt onto the lowest interest rate as possible. Whether that is a nought per cent credit card or the best personal loans at about eight per cent, try to pay it down as fast as you can. The rates you will be paying will rise over the next couple of years so to get that debt as small as possible as quickly as possible is the best way to go.”
Related Posts
Have you managed to streamline your New Year debt?
Although it may seem that Christmas is long gone, it has actually only been a couple of months since the festive season and New Year, and sadly many people are still reeling from the financial repercussions of the period, having spent far more than they intended to, and often having put the cost of the season on their credit card or used some other form of borrowing to pay for it. »
Minimum repayment encouraging credit card debt
Many consumers are being lulled into a false sense of financial security by credit card lenders that are quite happy to accept very low repayments on the credit card balance, but failing to make clear to the consumer that this will lead to a lifetime of debt for many. »
Acknowledge and deal with your debts
It can be very tempting for those with a high level of debt and financial commitment to simply try and ignore their financial worries once difficulties set in. Many people think that burying in their heads in the sand and trying to ignore financial worries means that they will not get stressed over the situation, but in fact failing to address this sort of problem can actually make the whole situation much worse, and could ultimately result in health problems, family problems, credit problems, and even legal action – or worse still loss of your home if you have secured finance.»
Is debt consolidation the answer?
With an increasing number of households finding themselves under financial strain as a result of high living costs, tight credit conditions, and rising bills, it is little wonder that so many have decided to turn to consolidation in order to try and reduce their outgoings, reduce the number of debts that they have to deal with, and ease the financial strain that is has left many teetering on the financial brink. However, it is important for anyone that is considering this step to determine whether consolidation is the right answer.»
Credit Cards – An Expensive Loan
Credit cards make access to loaned funds, or credit, really, really, simple. The ease with which people can borrow money with credit cards is both their huge advantage and their huge disadvantage.»
Leave a comment
More from Debt News category
Ads and sponsors