If you are overwhelmed with trying to manage your credit card debt, you have most likely considered transferring all your debt to a promotional card offer. When trying to make a decision about transferring credit card debt, always make sure to research both the pros and the cons of transferring debt to a new promotional card. This is the only way that you can truly see if transferring debt is the right move for your specific case. Without the proper research, you may end up making a foolish move that will only hurt your down the road.
When you are considering a possible credit card debt transfer, the first thing you will want to do is compare the interest rates between both your current and several other promotional cards. Better interest rates are one of the biggest factors that leads to a credit card debt transfer. If a promotional card is offering you a better interest rate, this is the first good sign. You will most likely want to eliminate any cards that have equal or higher interest rates than your current card from the pool of cards you are considering to transfer your debt into. However, even if a promotional card has a better interest rate than your current card, more research is required before making a final decision.
Another key focus of your research should be the specific promotional offers of each credit card. Some cards may offer you a 0% introductory APR. Other cards may offer some sort of debt forgiveness to its card holders. With hundreds of major credit cards on the market, it may be a tedious process to research the specifics of every card. Nonetheless, you must spend time researching to make sure you get the best credit card that is perfect for you.
When you are looking to transfer your credit card debt to a promotional card, there are also several red flags that you will want to look out for. Some credit cards may include a balance transfer fee that is hidden in the fine print of the credit card agreement. This fee often ranges from 3%-5%. This fee will only increase the amount of money that you owe a credit card company. Although it is sometimes unavoidable, make sure you are aware of this when researching potential credit card debt transfers.
One final thing to consider before transferring credit card debt to a promotional card is your credit card debt plan. If you have not figured out exactly how you plan to pay off your debt, opening a new credit card may only increase your credit card debt. Before making any final decisions, make sure to figure out exactly how much you owe in debt and what credit cards you plan to keep and which you plan to cancel. Lastly, make sure to devise and stick to a debt repayment timeline. This will allow you to slowly chip away at a debt that may seem unmanageable at first.