We all have different methods and theories that we use when it comes to paying off debt. Some people may find that one method works well for them, but the same method will not work for someone else. It’s all about finding the right processes for you to follow so you can effectively and efficiently pay off your debt.
“So many people get buried in debt, and their first reaction is to go out and get another credit card to fill with more debt. This only compounds the problem and adds to the stress they are feeling, balance transfer credit cards can help them drastically relieve their stress by lowering the interest rate on that debt,” says Jeffrey Weber of SmartBalanceTransfers.com.
Sometimes the most difficult and time consuming part of the process is finding a method that will work with you and your lifestyle. Here, we have saved you a little time and hassle when it comes to balance transfer credit cards. After reading this article, you can determine whether or not you are the type of person who will benefit from a balance transfer credit card. Here are four types of people who could benefit from a balance transfer credit card.
People who Struggle to Keep Track of Payments
Many people, especially people who have multiple lines of credit, get buried in bills every month and struggle to keep up. It is always easier to just keep track of one payment than to follow multiple payments each month. This way, you can simplify your life and see all of your debt in one place, so you know exactly how much you owe.
People who don’t Like Paying High Interest Rates
Transferring your balances to a balance transfer credit card usually lowers your interest rates significantly. You will, however, have to pay balance transfer fees, but those fees are almost always lower than the interest rates you are currently paying on multiple lines of credit. Use a balance transfer calculator to determine if you will save money by transferring your balances.
People who make Payments to reduce their Debt every Month
If you are the type of person who always makes more than the minimum payment every month and you are determined to pay off your debts quickly, than a balance transfer credit card could help you significantly. Balance transfer credit cards can cost you as much in interest and other fees if you are not willing to make substantial monthly payments.
People who want to free up their Lines of Credit
As mentioned before, many people just keep signing up for new credit cards before paying off old ones to get more credit. This, of course, is a dangerous path to go on. By using a balance transfer credit card, you can have all the balances from your other lines of credit on one card, so that you can’t ignore it, and still have extra credit to work with. That way, you can still maintain your lifestyle while paying off your debt.