Paying Down Debt with a Balance Transfer Credit Card
April 28, 2020
If you are trying to pay down some of your expensive credit card debts, a balance transfer from a credit card to another credit card can be a good cost-saving approach for you. The balance transfer credit card allows you to pay zero interest on any amount transferred. Thus, giving you enough time to pay off your actual debt. Our team of knowledgeable consumer credit protection attorneys at Stecklein & Rapp in Kansas City, Missouri, can explain the details.
The Benefits of Using a Balance Transfer Credit Card
According to data available at CreditCards.com, consumers pay an average interest rate of 16.22 percent (April 22, 2020). Having high interest rates can affect the cost of carrying a balance on your credit card. This is why you should consider getting a balance transfer card to eliminate debt.
Balance transfer credit cards offer you the opportunity to pay zero interest on the amount you transfer, usually for over a year. With this, you will have enough time to dedicate more money to pay off your debts. Some benefits of using a balance transfer credit card include:
Lower Credit Card Interest Rate: Balance transfer credit cards offer lower or zero interest rates. In case you currently have a high-interest rate on your credit card, you can take advantage of the balance transfer card.
More Down Debt Payment: Also, since you'll have a lower or zero interest rate and probably no charges on the balance transfer card, you can put more of your monthly payment towards reducing your credit card balance, rather than toward interest.
Move Balance: However, your current credit card may have many bad terms, such as a relatively short grace period, high fees, and more. With a credit card balance transfer, you can move to a better credit card and ultimately close the old one.
Consolidate Credit Card Debt: You can also consolidate credit card debt and move multiple credit card balances to a single credit card with a balance transfer. This way, you can easily pay off one credit card balance rather than making multiple credit card payments every month.
Cons of a Balance Transfer Credit Card
The potential downsides of balance transfer credit cards include:
If you don't qualify for a promotional interest rate, you could end up with a higher interest rate after the grace period.
Eventually, balance transfers can become expensive.
Applying for or opening a new credit card account can affect your credit score.
A zero percent balance transfer offer looks like an excellent opportunity to enjoy a couple of months (or up to a year) without any credit card interest. However, don't assume that this is a single, permanent solution to your credit card debt. Rather, this is just one small piece of what should be a much larger debt settlement strategy. Before you jump at the opportunity, it is very important to review your situation in its entirety with experienced debt relief attorneys.
Why You Need an Attorney
A balance transfer credit card can help you get out of credit card debt. However, if you're not careful, you can be dragged even deeper into the debt hole. Rather than getting a balance transfer credit card or going through the process on your own without adequate knowledge, it is important to consult knowledgeable debt relief attorneys. Our team of attorneys at Stecklein & Rapp will review your unique situation and help you make smart decisions. This way, you can pay off credit card debt and get things back on the right financial track.
Debt Relief Attorneys in Kansas City, MO
For over 20 years, our experienced attorneys at Stecklein & Rapp (formerly Consumer Legal Clinic, LLC) have been providing detailed legal counsel and advocacy to individuals having credit card debts and other credit-related challenges. If you are trying to pay off your debts with a balance transfer credit card, you can turn to us at Stecklein & Rapp for proper guidance and informed decision making.
With locations in Kansas City, Kansas, Kansas City, Missouri, and Lincoln, Nebraska, we have the knowledge and experience to advise you on your unique situation and help you make informed decisions. Call any of our offices today to schedule a free consultation with an experienced Kansas City debt relief attorney.