Balance transfer can be of great help because it can lower the interest amount on the debt.
Dallas, TX (PRWEB) July 13, 2013
Credit Card Consolidation Loan publishes an article that aims to educate consumers on one option that they have to consolidate their debt - balance transfer.
The article is given the title “How To Use Credit Card Balance Transfer As A Debt Solution,” and it begins by stating how hard it is to get out of credit card debt because of the high interest rate. This is where balance transfer can be of great help because it can lower the interest amount on the debt. According to the article, this is a great alternative to debt consolidation loan.
The article proceed to cite the process of this debt solution. Balance transfer involves applying for a new card that will provide the consumer with a 0% interest for the first 6 to 18 months of the account. The consumer will transfer the balance of their high interest card accounts to this new one. There is a fee involved that is 3% of the transferred amount. In some instances, the transfer fee is a fixed price regardless of the amount that will be shifted.
The article states that to maximize the benefits of this program, the consumer must take advantage of the zero interest. Any payment made during the promo period will be credited to the principal debt of the consumer.
Since this debt solution does not involve a professional, the article provides specific steps that will help consumers implement balance transfer.
1. List the high interest debts that will be transferred.
2. Call the creditors to discuss the intention of transferring balances.
3. Search for balance transfer card accounts.
4. Call the most promising card company that has the best 0% promo period, APR rate after the promo, transfer fee, annual/standard fees, promo details, credit score effects and any late penalty charges or implications.
5. Fill out the form to make the balance transfer official.
6. While waiting, create a payment plan that defines how the consumer will maximize payments during the promo period.
7. After receiving the confirmation from the new credit card company, call the old creditor to confirm the transfer.
CreditCardConsolidationLoan.org encourages their readers to cut off the old accounts so that they will not be tempted to use them and thus incur more debts. Also, the company also encourages that consumers continue to pay the minimum of the old account until they are sure that the transfer to the new one is complete. That will keep the late payments from accumulating.
The article also reminds consumers that balance transfer does not solve the problem but provides the consumers with an easier payment plan to help them pay down the debt. The article provides further tips on how to make sure that this will all work. To read the rest, visit Credit Card Consolidation Loan.
The debt relief company offer debt consolidation loan to solve consumer credit problems. Call 877-843-6110 for more information.