Balance Transfer as a Debt Elimination Solution
The introduction of balance transfer credit cards in the market bring a new glimpse of hope for those who are 
burdened with credit card debt. But are they really the solution to your debt problems?
Should you transfer your balances to a new credit card?
The answer depends on the credit card’s rates and charges. Keep in mind that the rate of interest alone does not determine the true value of a credit card. For instance, a credit card that offers a low interest rate may require a high annual fee, expensive penalty charges, and unreasonable transaction fees. In this case, the amount of money you save from the low interest rate can be offset by all the other fees you need to pay.
Therefore, choosing the right balance transfer credit card is crucial in your debt elimination solution. To be able to compare one credit card from the others, you should take the time reading the fine print or your Terms and Conditions. This form discloses the true costs and the terms associated with the card.
After choosing the right balance transfer credit card, does that mean you’re work is done?
On the contrary, your real work has just begun. After moving your balances from your high rate credit cards to your balance transfer card, you would need to keep up with your payment obligations religiously. A single late payment can get penalized not only with a late fee but you may get disqualified from enjoying the zero interest on your balance for the month.
In addition, take note that the zero interest offer is only good for a few months. Usually, you will be given six months to 12 months to finish paying off the balances you transferred before the zero interest rate expires. If you’re really serious about eliminating your credit card debt, you should be determined to complete your payments within the given introductory period.
Furthermore, using your balance transfer card for purchases can be dangerous. Since the zero interest rate applies only to the balances you’ve transferred, the interest rate for new purchases could be high enough to put you in debt before you even manage to get out. So before you charge new purchases on your balance transfer card, make sure that you can afford to pay those balances in full and on time. Better yet, refrain from incurring new charges altogether.
Another challenge that you must face is keeping your credit card use under control. Too often, consumers tend to go back to their old spending habits as soon as their outstanding balance starts to decrease. Thus, instead of completely eliminating debt, these consumers find themselves stuck in credit card debt all over again.
As you can see, eliminating bad debt or consolidating credit card debt with the help of a zero interest credit card is not as simple as what the advertisements promise. Debt consolidation requires determination and self-discipline in order for you to succeed.
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