Using 0% Balance Transfers to Alleviate Debt

Credit cards are extremely convenient and useful, but they have a dark side that is often difficult to escape once you're in too deep. Credit cards can get you into a terrible mess when used irresponsibly, without paying them off or down significantly as you go along. You have the potential to be left in debt for years, ruining your credit and thus, your chances of being able to acquire assets like vehicles or homes. Rest assured that, if you find yourself drowning in credit card debt, you are not alone. Millions of people are in the same situation, and because of the size of the problem, there are plenty of ways to get out of it.

Balance transfers are one of the most common ways to take steps toward paying off credit cards. Shifting high-interest debt to a low or 0% balance transfer credit card is a great way to save money on interest when you're ready to be serious about chipping away at that balance. It's easy to do a balance transfer, but just like with using credit cards, there are pitfalls to this method that must be avoided for it to work in your favor. First, obtain your credit reports so that you know what your history and score are looking like right now. You should have no problem getting approved for a 0% balance transfer interest rate if you have good credit. Some people are lucky enough to even find a card that offers a no fee balance transfer, but these are rare. You can pretty much bet that there will be an average fee of 3% of the amount you wish to transfer, so prepare yourself for that.
Most credit card companies impose limits to the amount you can transfer. If your debt is more than $10,000, you probably won't be able to transfer the whole thing--and it's likely you wouldn't want to because of the additional 3% fee that would be tacked onto that. At this point, you need to decide how much you are willing to transfer to one card. You may also consider transferring one large debt to two different cards assuming they both have 0% balance transfer rates. If the idea of obtaining two more cards makes you wince in financial anguish, simply transfer as much as that balance as you can stand to a 0% interest card--this alone could save you hundreds or even thousands of dollars in interest while you pay off the rest.
Transferring a balance can be a really smart debt relief move, but remember that it takes time and discipline to pay off large credit card balances. Get ready to buckle down and stop charging your credit card(s). This is the only way you'll get the best possible results from your balance transfer. If you have a low or 0% balance transfer interest rate, chances are it will not last forever--12 months at the most. The name of the game now is paying off as much as you can in as little time as possible. Use foresight when managing your finances from now on. So many people wait until it's too late to begin taking steps toward correcting their debts. If you can regulate debt early on, you'll have more of an opportunity to be debt free later in life.