NEW YORK, NY--(Marketwired - Jul 2, 2014) - Balance transfer credit cards are an easy fix for those in debt. By using one, cardholders can consolidate all their debt onto one card and save money by paying 0% intro APR for a specified period of time. It's simple and helps consumers focus on paying off their current debt without incurring more. But many people don't use balance transfers. Why not?
Many do not understand the benefits of balance transfers or how and when to use them. According to Yael Kent, editor of Creditnet.com, "Balance transfers are easy tools to help consumers keep their finances stable, if used in the correct situation. Unfortunately, balance transfers are associated with debt, resulting in a negative connotation. Their significance is often overlooked or misused."
To separate fact from fiction, Creditnet experts have put together a list of situations in which making a balance transfer is a good idea to help your finances:
1. For those who always carry a balance:
Always having a balance increases debt fast. Although cardholders may pay off the minimum each month, they are only scratching the surface of their debt. Interest continues to build up, and users end up buried in more and more debt. Balance transfer credit cards offer lower, even 0% intro APRs, for an extended period of time. These can help consumers pay off their actual debt, instead of only eating away at the interest charges.
2. For those who carry a balance on multiple different cards:
Having multiple credit cards with different interest rates can be quite the hassle to keep track of, especially for those who carry balances. By switching to a balance transfer credit card, all of the debt can be consolidated onto one card with one interest rate to remember. Plus, by getting a card with a low or 0% APR, consumers will be able to cut down on the amount of bills and extra interest charges.
3. For those who have a credit card with a high APR:
High APRs can really hurt consumers. Even for those who normally pay in full, making only the minimum payment once can result in a lot of extra money to pay off. So, if the APR is high or the current credit card issuer ups the APR, cardholders may want to look into a balance transfer card. A balance transfer card will allow them to save money with lower interest charges.
Balance transfer cards can easily help consumers get their finances back on track. For more information regarding which card to get, check out Creditnet's comprehensive list of balance transfer credit cards: http://www.creditnet.com/credit-cards/balance-transfer-credit-cards
Creditnet is an authority credit card comparison site that offers innovative comparison tools to help users find the best credit card for their needs. In addition, the Creditnet Credit Talk Forum is a community of over 100,000 members that discuss credit cards, credit, debt, and credit repair daily.
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