Pros and Cons of Credit Card Balance Transfers
PHOENIX--(BUSINESS WIRE)--Mar 5, 2019--Balance transfers offer consumers the opportunity to reduce the amount of interest owed and pay down their credit card debt faster. This can be a nifty tactic when done right — but the numbers don’t make sense in all cases, which can lead to costly challenges down the road.
A balance transfer entails moving the balance from one credit card to another card with a lower interest rate. Seems great on the surface, but extra fees and conditions could potentially negate the benefits if borrowers aren’t careful.
“For many, a balance transfer is a straight-forward solution,” said Michael Sullivan, a personal financial consultant with Take Charge America, a national nonprofit credit counseling and debt management agency. “However, I always recommend doing some research before committing to transferring any balances. You need to make sure you can realistically pay off the balance before steeper rates kick in. Failure to do so could set you back further in your journey to become debt-free.”
Sullivan offers consumers guidance on whether or not a balance transfer makes sense for their situations:
Pros of a Balance Transfer
Cons of a Balance Transfer
“No matter the route you chose, it’s important to stop spending on both credit cards. If you continue to rack up debt, you’ll offset all balance transfer advantages,” added Sullivan.
If you have questions about overcoming credit card debt, contact (888) 822-9193 or visit www.takechargeamerica.org.
About Take Charge America, Inc.
Founded in 1987, Take Charge America, Inc. is a nonprofit agency offering financial education and counseling services including credit counseling, debt management, student loan counseling, housing counseling and bankruptcy counseling. It has helped more than 1.6 million consumers nationwide manage their personal finances and debts. To learn more, visit www.takechargeamerica.org or call (888) 822-9193.
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CONTACT: Taylor Holmes
KEYWORD: UNITED STATES NORTH AMERICA ARIZONA
INDUSTRY KEYWORD: SENIORS WOMEN EDUCATION OTHER EDUCATION PROFESSIONAL SERVICES FINANCE CONSUMER MEN
SOURCE: Take Charge America, Inc.
Copyright Business Wire 2019.
PUB: 03/05/2019 10:30 AM/DISC: 03/05/2019 10:30 AM