Transferring a credit card balance to get out of debt
Many people in Florida use credit cards to pay for items that they cannot afford. Unfortunately, this can often lead to generating a balance on a card with a high interest rate. One of the strategies that some people use to get out of credit card debt faster is by transferring the balance from one card to another.
Some credit card companies offer promotions that allow new customers to transfer a balance and enjoy a zero interest rate for six months or one year. After the promotional period ends, the interest rate on the new card may be higher than the previous interest rate. However, if a person can pay off all of their credit card debt during the zero-interest period, they could save a lot of money.
Before a person signs up for a new credit card and schedules a balance transfer, they should read the fine print on the new card offer carefully. Some credit cards charge a balance transfer fee and end the promotional APR as soon as the cardholder is late on one payment. Another mistake that debtors often make is transferring a balance onto a new card and then adding more debt to that account. Doing this can lower a debtor’s credit score and make it more difficult for them to qualify for another balance transfer.
Transferring a balance may not be the best solution for every credit card holder’s debt problems. If an individual is overwhelmed by their debt, they may want to talk to a lawyer about filing for Chapter 13 bankruptcy. In the Chapter 13 debt-removal process, a debtor does not have to liquidate their most valuable assets like their home or car.