Using Balance Transfer Credit Cards as a Debt Relief Program

Unfortunately, due to the financial recession, several Americans are currently facing more debt than they know how to deal with. However, it seems as though all the help out there for Americans has some bad side effect to go with it. After looking at debt consolidation, many Americans find out that it may hurt their credit and decide that it may not be their best option. The same goes for debt settlement! But, what if there was a way to get relief from debt without having to close credit cards and harm credit scores?

There is! This option comes by way of balance transfer charge cards. I know what many consumers may be thinking “I'm trying to get out of debt, why should I get a new charge card account?”. The key is understanding balance transfer credit card accounts and the financial benefits they may provide.

Balance transfer charge cards work just like any other credit card accounts. They are small pieces of plastic with a magnetic strip that attaches that card to the account holder. Balance transfer charge card accounts can be used for purchases and cash advances. However, as a debt relief option, people should use balance transfer credit card accounts to transfer balances. That's right, these credit cards allow Americans to use them to pay off higher annual percentage rate balances.

In most cases, balance transfer credit card accounts come with introductory annual percentage rates. Introductory APRs are low APRs usually between 0% and 2.9%. These interest rates will be applied to the balance for the introductory period. Usually introductory periods start the day the account is opened and end within 6 to 12 months. In some cases however, people may be able to find 0% introductory annual percentage rates for as long as 18 months.

This is huge for people facing financial hardship due to overwhelming revolving debt. The process is simple. First, people will have to compare balance transfer credit card options and apply for the best option available. Next, simply use the new balance transfer credit card to transfer as much debt as possible to the new low interest rate. This introductory annual percentage rate period has helped thousands of consumers with reducing credit card account debt.

Although balance transfer credit cards are a viable form of debt relief, there are a few things that consumers should look out for when looking for a new balance transfer credit card:

Introductory annual percentage rates: Before applying for a balance transfer credit card for debt relief, consumers should make sure that they will be receiving a low introductory APR.

Standard annual percentage rates: Before applying for a balance transfer credit card for debt relief purposes, people should be aware of the standard annual percentage rate on the account. In most cases, when the introductory period is over, all balances will be moved to the standard interest rate. Therefore, if people apply for a new credit card that has a higher standard APR than the old one, they may be getting themselves in a worse situation.

Transfer fees: Most balance transfer credit cards come with transfer fees that range from 3% to 6%. It is important that the savings provided by the introductory annual percentage rate outweighs the cost of the transfer fee.

This article was written by Joshua Rodriguez and is brought to you by:
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