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All  |   Discussion (0)Balance transfers

Credit cards: If the high interest rates on your credit card are hurting you, you can often transfer your debt to a new credit card from another company and pay a highly reduced rate of interest for a period of time (eg, six months). This can give you an opportunity to get on top of your repayments.   thesource (378)

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Paying off the full balance: You can do two things: 1) Throw every dollar you can at it to get it down and then "live off the credit" as you will have no cash 2) Balance transfer whatever the shortfall is to another card and pay the rest. Go for cards that offer sub 6% balance transfer rates, usually just for 5 or 6 months. Balance Transfers: When you conduct a large balance transfer to another card (with a lower interest rate), for the sole purpose of taking advantage of the lower interest rate, it is advisable to divest the new card of all direct debits and cut up the card (if you need to) to prevent you from using it. This is because any purchase you make on the new card will accrue interest at the normal high rate until such time as the transferred balance is completely paid-off. If you intend to make a large balance transfer, make sure it happens after an annual fee is applied if you can. This is because annual Fees are actually regarded as purchases (crazy, I know) and so you will pay interest on them until the huge balance transfer is paid. Some cards deliberately do this so they can charge you a purchase interest rate for something on a card they know you want as a balance transfer card.   myxlfidian (150)

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