One of the strongest successes in credit cards over the last 10 years has been the zero per cent balance transfer promotion, where users could keep from paying interest charges on the credit card debt by shifting it onto a replacement credit card that charged no interest charges for a finite span on balances transferred on to it.
Not simply was this hugely popular among people, who could dodge paying interest fees on the cash they owed more or less indefinitely by diverting the balance from card to card, it became a fiercely fought for marketing point for card companies who wanted to offer longer and longer offers to draw in brand new prospects. Sadly, this situation couldn't last - it was basically costing the credit card companies too much money in lost interest charges, and thus the appeal of balance transfer offers began to be reduced by additions along the lines of a balance transfer fee, where a set fraction of the balance shifted onto the credit card was incurred as a handling fee.
Currently, interest free balance transfers are still out there, but the shrinking variety of card companies means that it's tough to find a different provider to transfer the balance to at a nought per cent rate. What else could you do if you still have a hefty debt, and want to pay as little interest as you can? The answer is a life-of-balance transfer offer.
With these promotions, as an alternative to paying 0% for a month or two on your debts, followed by the entire standard APR of the credit card once the promotional period has ended, you agree to pay a minimal percentage rate of about 5% APR which is preset until the amount owed has been entirely paid. Albeit you're still having to pay for interest, these deals are far more inexpensive than traditional debt on a credit card, and in many instances are also more inexpensive than other sorts of finance including unsecured loans or overdrafts.
Preferably, you'd take the chance offered by this low rate to concentrate all your financial firepower on repaying the debt as speedily as possible, and you definitely shouldn't go shopping using your lifetime balance transfer card if you would like to get the most benefit from the low rate available.
Accordingly, should you have a sizable credit card account balance and wish to start paying it off in the most efficient and affordable way you can, a lifetime balance transfer deal is worth thinking about.
Article supplied by: Life of Balance Transfers
