Do Your Homework Before Balance Transfers and/or Debt Management
Boca Raton, FL (PRWEB) January 22, 2013
At this time of year both debt relief firms and the banks themselves advertise more aggressively based on the fact that many consumers are strapped with more debt than at any other time of the year. This is due to holiday spending and the bills that are coming due now in January. Many of the credit card issuing banks will now advertise more balance transfer offers. It is important to understand what consumers may be committing to when taking advantage of what “appear” to be more attractive ways of paying off post holiday debt. It is very important for credit consumers to be aware of what they are signing up for when transferring these balances. In some cases when the introductory rates that are offered for balance transfers expire, if the majority of the balances have not been paid off at the promotional rates before expiration the cost of paying off those accounts could be higher than what would have been paid if the balances had not been transferred at all.
Some of these offers go as low as 0% for a period of 6 to 12 months and along with these 0% offers the monthly payments drop too. It is very easy to get comfortable with these lower payments and months go by quite quickly before the introductory rates expire. In addition to the banks offering these attractive introductory balance transfer rates, debt relief advertisements are all over the internet and the television because this is the peak season for both industries. These offers should be approached with caution by consumers dealing with high interest credit card debt. In many cases consumers will not even qualify for these offers and also both the consumers that do or do not qualify might be better served by a combination of debt management and balance transfers. Balance transfers should be to banks that offer consumer friendly debt management rates if the necessity for debt management becomes necessary later. For info on rates offered for debt management CLICK HERE. If a consumer is carrying a significant amount of high interest credit card debt it would be advisable to contact a legitimate debt management firm prior to committing to any balance transfer offers to see if the banks they are transferring balances to offer good rates for debt management. Once again the combination of balance transfers and debt management can be the best solution to paying off these balances.
SOME TIPS ON MAKING A DECISION
1. Contact a legitimate debt management firm first.
2. Find out what rates are offered by the various banks in a debt management program.
3. Be sure not to confuse “debt management” with “debt settlement” these are 2 entirely different services. Debt Settlement is for consumers already severely delinquent on their accounts that would not qualify for balance transfers.
4. Be sure the debt management firm explores balance transfers before enrolling accounts in the debt management plan.
5. Look up the debt management firms BBB REPORT before enrolling
6. If you find that accounts can be paid before introductory rates expire debt management may not even be necessary.
7. If debt management and balance transfers in combination turn out to be the best option get the best transfer offers and the most reputable debt management firm.
8. The right debt management firm will help consumers make this decision automatically without the consumer having to ask for this analysis.
9. Be aware of transfer fees that can be $300 to $400 at times which may offset savings from the transfer.
10. Use Caution when choosing any debt management firm, CLICK HERE for info.
For more information on debt management visit http://www.debtsynergy.com or call 800-810-5250