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The following is a guest post. Enjoy!
Why Do Balance Transfers Make Sense?
It’s Not As Good As It May Appear
Other Considerations On Balance Transfers
Don’t Miss This Date
How about you all? Have you ever used a balance transfer to help pay off credit card debt? Was it effective? Did you pay down the balance before the 0% balance transfer period ended? How did you use the card after the 0% balance transfer period ended?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
- I have been very fortunate so far in life to avoid student or credit card debt (let’s keep our fingers crossed that it stays this way), so I have never personally had to use one of these 0% balance transfer offers/deals.
- However, I do think that they can be a very useful strategy for reducing your debt, as long as you are disciplined and follow the advice given in this article.
- One other utility of these 0% balance transfer offers is that they can be used as bargaining chips when talking with your credit card company to negotiate a lower interest rate over the phone. This can be done by telling your current credit card company that you will transfer your balance to a 0% balance transfer offer if they don’t give you a lower rate. Nice right?!
- This article is definitely correct regarding the advice that before using a 0% balance transfer offer, you need to read through the details very closely to determine what fees will be charged.
- The normal type of fee that is charged with balance transfers is an up-front fee of 3-5% of the balance being transferred.
- Even though this may seem like quite a bit at first, it will most likely be less than paying 10-20% APR on a balance that compounds daily! Yikes!
- Jonathan @ My Money Blog provides a good list of 0% balance transfer offers with fairly low fees at the following link – Best Pre-Screened 0% Balance Transfer Credit Cards. This list would be a good place to start if you are thinking about embarking on the 0% balance transfer journey.
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