Should You Consolidate Debt Through Balance Transfer Cards?
No one wants to be in the red when it comes to finances, yet it happens even to the best of us. For a wide range of reasons, many people face an overwhelming amount of credit card debt. Luckily, overcoming this financial situation is possible through various methods. One of the fastest ways to get your finances back on track is through the use of balance transfer cards to consolidate your debt. But before you push through with a balance transfer, you have to evaluate if you are ready to commit to this process.
What Are Balance Transfer Credit Cards?
Balance transfer credit cards are provided by financial institutions other than your original card issuer. These cards are used to help you save on interest payments by transferring your balance on a single account or more to a new one with lower rates. As such, paying off your debt becomes a faster, more manageable process.
Benefits of Using Balance Transfer Credit Cards
By consolidating credit card debt into a new account, you can take advantage of the significantly lower rates offered by your financial institution to pay off your debt faster. Additionally, you will only need to keep track of one payment schedule, making it less likely for you to be charged an overdue fee.
Things to Consider
Moving your outstanding balance to a credit card with significantly lower interest rates can help you pay off your debt quickly if done correctly. You have to ensure that you are ready to commit to making payments on time, every time. Otherwise, your finances may end up back in the red.
Consider the amount you are paying on your current account and assess if moving your debt to another card is the right move for you. Lastly, pay attention to the terms of your balance transfer and make sure that they are favorable to you.
Let Us Help You
At OnPath Federal Credit Union, we help members get back on track with their finances. Our team of dedicated professionals is ready to assist you in getting a balance transfer card from application to approval. Apply online today.