Cheap balance transfer credit cards are very much in demand these days. People are having so much trouble managing their debts and paying the minimum amounts every month. If you are not able to make your minimum payments then you will be accumulating huge debts which will take a long time to repay. It is so because if a person is in debt then he/she does not have enough money to make even a single payment. Hence it is important that you get out of the situation of debts without any delay.
In such times, the best solution to come out of the situation of debt is to apply for one of the cheap balance transfer credit cards. These credit cards will offer you so many facilities that you will find it hard to resist. One of the most beneficial facilities provided by these cards is that it can help you to reduce your credit card debts. In other words, if you use it properly, it will help you to get out of debt without paying too many fees.
There are various reasons why credit card companies charge you high interest rates. They do this because they earn income through the interest they charge on the loans you take. But when you transfer your debts to one of the cheap balance transfer cards, then you will not pay any interest to them. This is because your balance will now be in the hands of the company.
Hence you can transfer your credit card debt to these cards without paying any charges. You can do so only after negotiating with the card firms. These private loan providers or the card firms are aware of the fact that you may opt for any option to eliminate your debt but they charge such high interest because of which you can easily avoid them.
However the card firms have another reason for charging such high interest. The reason is that you are going to remain loaded with debt for at least another 18.9 months. If you continue paying your balance after a gap of at least one to two years, then you will be loaded with debt for a total of around $35000. Once the entire balance transfer credit cards of a customer is transferred to just one account, then that customer can easily reduce his/her debt by paying a lump sum amount to the company. This will be so if the customer does not wish to make future payments.
All you need to do is negotiate with the balance transfers card firm and ask them to waive off the balance transfers or reduction on interest charges. You should know that the balance transfers will be beneficial only if you continue to pay your bills after the gap of at least one to two years. Otherwise, the benefits will be nullified. Hence you should negotiate with them and convince them that you will pay your bills after a gap of at least one to two years.
However, even if you negotiate with card companies, you might have to face a loss in the end. If you remain loaded with debt after the gap of at least one to two years, then the customer will lose the benefit of balance transfers. This means that he/she will have to pay the same interest rates as he/she was paying before the card giving out the new card to you. You will have to pay a higher price for the transfer if you remain without a source of monthly income.
Thus there is no doubt that a balance transfers card gives an advantage to the customer. However, you should know that you should maintain a healthy budget in order to pay back your debt in time. Otherwise you may face a problem with your lenders as well. It is always better to pay your bills promptly than to take the risk of paying more than your required monthly income.