If you find yourself metamorphosing into a plastic junkie, then you may use balance transfer credit cards to consolidate your payments. However, the best balance transfer credit cards offer some incredible deals and if you use them judiciously, who knows, they may even help you write off all your debts. No wonder, a balance transfer credit card has become the rage with Generation Plastic and a large number of them are happily on their way to debt freedom. If you wish to join this debt-less club, read on.
Know All About the Best Balance Transfer Credit Cards
First, don the knowledge armor by reading many more articles like this. They are available freely on the net, they provide hot tips and guaranteed strategies for fighting credit-induced poverty, and will help you save thousands of pounds.
Next, try analyzing your credit history. If it is any good, card companies will be happy to transfer large balances for you. However, if your credit history is marred, or slightly flawed, then you may have to settle for a smallish balance transfer. While this may not be much of a help it is, at least, a step in the right direction.
Your best bet, really, is to get the card company on the negotiating table. Let them know that you can take your business elsewhere if they do not agree to your request. Also, try to convince them that you are able to plan your finances better now and show them the steps you have taken towards constructing a viable financial strategy.
The Details of Balance Transfer Credit Cards
Such cards will offer a zero percent rate of interest only if you follow their rules. Therefore, it pays to do some eye stretching exercises and scour the fine print. Do you have make X purchases within a certain time frame? Or you are not allowed to spend Y? Or they may stipulate that you absolutely must purchase something. The devil, truly, is in the details.
Time Limits of a Balance Transfer Credit Card
Wouldnt it be just perfect if you could enjoy a zero percent balance transfer all your life? Or maybe a lower rate of interest? Well, truth is, every company offers a certain time period during which you can get a zero or lower rate of interest. If you are financially savvy you may, theoretically, be able to work off your debt by jumping from one zero percent balance transfer credit to another. You will be surprised at the number of people who do so. So choose a card that offers a zero percent balance transfer for the longest possible period.
Money Back with a Balance Transfer Credit Card
Some companies will lure you by offering a cash back on purchases you make with a new card. If you plan to retain this card for some time, you may consider this option. Not that it will help pay off your debt, but if a penny earned, is a penny saved, then it is worth investigating such a deal.
Annual Fees of Balance Transfer Credit Cards
Whats the point of a balance transfer if you have to shell out a packet in annual fees and processing charges etc? If the whole idea of a balance transfer is to pay off debts, then look for a balance transfer credit card that offers a zero annual fee in the first year. Try to negotiate a zero fee for the next year as well. If you dont plan to retain the balance transfer credit cards for very long, start shopping for a new card with zero annual fees as soon as you have finished the formalities for this one. You will soon realize that the best balance transfer credit cards need to work for you, not against you.
What Do You Do When You Finally Pay Off Your Credit Card Debt?
The problem is, it is darn near impossible to live without a credit card or two. Otherwise, how do you buy online, book a flight, or rent a car? You can still use a credit card after you have taken care of your debt, just do so in moderation.
Credit card debt is a very big problem that is being faced by a lot of people who have been irresponsible and undisciplined in the use of their credit card. Though some might have landed up with credit card debt due to some unfortunate event or emergency in their life, most people carry a credit card debt due to their own financial mismanagement.
There are a lot of ways to pay off credit card debt and a lot of people do achieve this feat. Surely, to be able to pay off credit card debt is really a great achievement in itself for not everyone is able to pay off credit card debt. It takes a lot of discipline, restraint, planning and perseverance to finally pay off credit card debt. However, there is more to paying off credit card debt then just being able to pay off your credit card bills.
What happens to your life after you pay off your credit card debt successfully? As mentioned before, of all the people who try to pay off credit card debt not everyone is successful. However, some people fail after they have succeeded in paying off credit card debt. These are those people who let themselves loose and go on a spending spree as soon as they pay off credit card debt.
Soon, these people again end up with a credit card debt and are again trying to pay off a stack of bills. So, its not enough to just pay off credit card debt, its equally important to maintain a debt-free status even after you pay off credit card debt; only then can you enjoy a stress-free life in the world of credit cards.
So learn your lessons well and do not let yourself wander down the path to more credit card debt. Most of the rules that you followed when you were trying to pay off credit card debt, will also hold good after you have paid off your credit card debt.
Here is a quick synopsis of things that you should take care of even after you pay off credit card debt:
1)Do not overspend. Giving in to the sale offers for something that you dont really need, is a big mistake that leads to overspending
2)Always remain within 70% of your credit limit.
3)Make credit card bill payments in time and in full.
4)Dont hold more than 2 credit card accounts (two are enough for anyone)
These are just very basic things you can do to keep your credit under control; you can add more based on your own experience and knowledge.
Are your credit card debts giving you nightmares? If yes read on and see if we can save you some money and help you sleep better at night. It is so easy to get yourself into debt, as all these credit card companies seem to be throwing these cards at us.
Learn to understand your statement if youre paying more than 15% of your monthly salary to your credit card bill then now is the time to take some action. If you pay the minimum payment and the interest charge takes up a lot of your monthly payment, not much is actually coming of the balance. For example say you pay 100 a month now take a look at your statement and see how much actually goes on interest.
Avoid minimum payments
The minimum payments are a nightmare they are costing you a fortune and will take years to pay of the debt. Credit card companies used to take 5% as a minimum payment of the total money owed, but now ask as little as 2% as people where finding it hard to pay back the 5%. This has in turn created a debt problem for many people.
Here are some ways to help you reduce your credit card debts! Try to stop using your credit card and if you cannot, monitor what you spend. Balance transfers are a good way to save you money, lookout for the ones that offer 0% interest free periods for 6-9 months; this will give you a bit of breathing space. Make sure you check the APR rate once the 0% interest free period is over and cut up the previous card, as you do not want to be tempted again and end up in more debt.
You can move your debt to a credit card with a lower APR
There is nothing that says once the 0% interest free period is over that you must stick with this card, if you watch what youre doing you could then change to another card that has the same offer on. Just be careful and make sure you have your dates correct, as you do not want to be getting charged for any late payments.
Once you feel that you have got yourself on an even keel the next step is to try and clear up your debt completely. The way we do this is to start with the credit card that has the highest APR rate, pay the most to this credit card and just pay the minimum payment to the rest of your cards, once this card is finished then go the next highest APR card and so on until all your credit cards are paid off.
Credit cards are a great thing and we all need them, but they must be on our terms and we must be able to pay them off, if possible at the end of every month. If we cannot, this is when the problems start as minimum payments only get you into more debt and will take years to pay off.
Remember
1) Try to stop using your credit card
2) 0% balance transfers can help you pay off your debt
3) Pay off the debt with the highest APR first
Once you have got the debt under control and at an amount that you feel is manageable, the next step is to try and curb the spending and clear the debt completely and get back on an even keel, then you can enjoy the spending freedom that a credit card brings you, but under your terms.