Balance Transfer Credit Cards Are Providing Debt Relief

24 January, 2012 (21:22) | Balance Transfer Credit Cards, Best Credit Cards, Choosing Credit Cards, Compare Credit Cards, Credit Card Debt Help, Credit Card Interest Rates, Credit Cards, Using Credit Cards | By: Rodriguez Joshua

So, do you have debt? Are you trying to get rid of it? Chances are the answer is yes however, when you did your research it seemed as though the only things out there were third party debt consolidation and debt settlement. Both of which have a negative affect on your credit score. Knowing that you have worked all of your life to obtain the excellent credit score that you have you probably have chosen to go against the more traditional methods of debt relief. With that said, I have found something that may be able to heal your debt pains and have an overall positive affect on your credit score as well.

The debt relief option is called balance transfer credit cards. I know what a lot of you may be thinking, how can credit cards help relieve credit card debt? Well the answer is simple. Balance transfer credit cards are specialty credit cards designed for just that. For the consumers who feel as though they are paying too high of an interest rate, balance transfer credit cards give them the opportunity to transfer their balance from their high interest credit card account to the new lower interest rate balance transfer credit card offer.

The greatest debt relief benefit of balance transfer credit cards is known as the promotional interest rate. Most balance transfer credit cards will come with a 0% introductory or promotional interest rate for the first 6 to 12 months. In some cases, this introductory period can even last as long as 21 months. This extended period of time in which you pay no interest definitely will give you a bit of leverage over your debts.

Another benefit to balance transfer credit cards for those dealing with high interest rate credit card debt is that even after the promotional interest rate expires, the interest rates on these credit cards tend to be relatively low. The key for most balance transfer credit card offers is not only to keep the promotional interest rate competitive but to also keep the standard rate competitive. With that said, generally, balance transfer credit card standard interest rates will range from 10.99% to 15.24% which is a great reduction from the 19.99% to 29.99% interest rate that you may be dealing with.

There are a few small draw backs to using balance transfer credit cards as a credit card debt relief method. These are simply the fees associated with the card. Some of these cards may have annual fees that are much higher than other types of credit card products. I suggest working only with lenders that offer annual fees of $100 or lower. Also, balance transfer fees can get quite expensive if you do not pay attention. Balance transfer fees are the fees charged to process a balance transfer and generally range from 3% to 5% of the total amount of the transfer. I would suggest staying away from any credit card offer that charges more than this for transfers!