Cards With Set Interest Rates On Balance Transfers

Three steps toward debt reduction

One way to consolidate debt is a balance transfer. You might have a credit card with a large credit limit and a low balance transfer interest rate. Move as much as you can to that credit card. If you have a card with a low limit but low interest rate, move as much as you can from the cards with the highest interest rate to the ones with the lowest. You will still have more than one card open, but you'll at least be paying on the debt with the lowest interest rates. If you own your home, you might be able to borrow against the equity in your home to consolidate debt by using a home equity loan or home equity line of credit. There is a big difference between the two: A home equity loan is a closed-ended account that's repaid over a set time. A home equity line of credit is an open-ended account similar to a credit card that you can borrow against and repay. The good news is home equity loans and credit lines often have lower interest rates and higher borrowing limits. But there is another side. You're transferring your credit card debt to the equity in your home. Don't go and charge on your credit cards once you consolidate your loans into an equity loan or line of credit. This will complicate your problem more. Before you consolidate debt, make sure you weigh all the options available to you. Understand the risks associated with your debt consolidation method. Finally, make sure you repay the loans you take out to consolidate debt. Remember, debt consolidation isn't paying your debt. You still have to do that. When you consolidate debt, you're just making it easier for you to pay. Consolidating debt could cost you some more money and could take you more time.

Get Out Of Credit Card Debt Using Other Credit Cards | Credit Card ...

Credit card debt is the scourge of any budget.

Typically, consumers who have large balances on their plastic find it very difficult to ever get it cleared out. This is because it is not like a standard loan which has a set payment and interest rate that actually allows for a payoff date. You could pay the minimum payment on your plastic for years but never actually pay it off.

The interest compounds which means that over time, you pay interest on the interest that you paid in the previous months. That is why it is possible to see your balance grow even if you are not spending and are making the minimum monthly payments. One way to get out of this cycle is by using other cards and do a balance transfer. There is a deal out there that can suit almost any budget, you just have to find the one that is right for you.

Balance Transfer Deals That Help Relieve Credit Card Debt

When you need a long term – Balance transfers are typically introductory offers. Once the introductory term expires, your interest rate will revert to one that is closer to a standard rate. The ANZ Low Rate MasterCard has a deal that allows you to move the balance from your other non-ANZ plastic to this one and pay only 2.9% interest for up to eighteen months. This is ideal for someone who has very high balances that will take a long time to pay off.

When you do not want to pay interest – The HSBC offering gives you six months at a zero interest rate. If this is enough time for you to pay off your transfer amount, you can save loads of cash by taking this deal. Just make sure six months is enough time for you to bring the balance down to zero too.

When you need to make purchases too – One of the keys to balance transfer success is to avoid making purchases on your new card. Because credit cards operate under an allocation of payments scheme, you could wind up in even deeper debt if you do not choose wisely. If you need plastic for spending and for a balance transfer, the Bankwest Lite MasterCard is an excellent option because the interest rate on the transfer and on purchases is only 5.99% for the first 12 months. After that, the purchase rate is a very competitive 10.75% per annum.

When you want an ongoing low purchase rate – The Westpac Low Rate plastic offers a solid interest rate on purchases of 13.49% per annum and a balance transfer rate of just 3.99% for six months. Those two rates combine can help keep your budget in check for the long term.