Transferring the balance of a credit card debt is simply paying off high interest credit cards or loans with lower interest credit cards.
The benefit of transferring a balance is that one can substantially lower the interest rate of the debt, which helps one pay off the balance in less time and with less money. The negative of a balance transfer are the fine print. A “low interest” card may only last a few months or change at anytime.
Be sure to also avoid “cross default clauses” of the fine print which state that if you become late on anything you owe, including a phone bill or medical bill, then the interest rate goes from the low to a high default rate.
Make sure that the low rate does not only apply to new purchases or will be considered a cash advance and carry a higher rate.
Therefore, make sure to read all of the fine print and ask these questions to a customer service representative before transferring a balance for a lower rate.
A-LAW DIRECTORY
A Debt Relief Agency serving Middle Tennessee with high quality, professional legal representation for nearly 40 years.
