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Balance transfer credit cards can be quite tempting. They offer a person the opportunity to ditch those nasty high interest rate credit cards, while usually throwing in some nice incentives to sweeten the deal. However, a person should be fully aware that there is nothing magic about about balance transfers. It's not like your debts just go away.

A very common reason that an individual considers a balance transfer credit card is that they want to consolidate all their credit card debt onto one card. This certainly is a convenience and cuts down on the number of bills they they have to pay. But be careful, when people do this they may actually end up paying more. The reason for this is that even though these cards often offer no or low interest initially, the free ride does not last forever. The rates will go up. So when the introductory period is over, the rates could be even higher than what they were paying before.

The best way to handle this problem is to pay down as much of the debt as possible before the rates go up. It is also vitally important that a person makes their payments on time. And do everything in your power not to add to that balance. Staying on top of payments and setting a plan to pay off the debt is the best way to ensure that a balance transfer credit card does the person good rather than harm. Balance transfer credit cards are a wonderful asset for those that have fiscal discipline.

Instead of dealing with multiple credit cards, with multiple interest rates, payment dates and fees, a person is dealing with one company. In the beginning they will usually get a low interest rate, many times no interest rate. This gives them a nice grace period to pay down their balance without the added fees. By budgeting out a plan that will get the debt balance paid down before a new, higher interest rate kicks in a person will have freed themselves from a large amount of debt.

Balance transfer credit cards can most certainly be a blessing, if a person knows how to use them responsibly and to their advantage. A balance transfer credit card is a powerful ally in eliminating credit card debt. By all means put it to work for you, not against you.

# posted by Medical Information : 2:44 AM