Have you got credit card debt that you can’t seem to clear? Are you paying the minimum repayments but seeing no dent made in you debt? Perhaps it’s time to consider a credit card balance transfer.
What are the benefits of a credit card balance transfer?
- You won’t be required to pay interest on the amount you owe for length of the introductory period.
- If the offer is for six months, you can use this time to pay off the amount owed.
- Paying off the outstanding balance means you won’t be required to pay any interest.
Provided you have some discipline and are able to stop spending during the interest free period, you can use a balance transfer offer to your advantage. Be warned, any additional spending during this time will only put you in the red, making it even more difficult to catch up on what you owe to your lender.
As with any financial product, there can be a few things in the fine print you should be aware of. Make sure you understand a product inside-out and read the product disclosure statement before applying so you won’t get sprung with unwanted fees and charges.
Stuck for where to start? RateCity has a convenient balance transfer credit card comparison tool which can help you locate the best credit card to suit your financial situation.