Welcome!

News Feed Item

Why You Should Transfer Your Balance, According to CreditCardChaser.com

NEW YORK, NY -- (Marketwired) -- 07/09/14 -- There are many ways to lower debt levels, and they don't all involved increasing income levels and making larger payments. With smart changes, debtors can bring down the expenses associated with their debt to make their payments go further. They can speak with credit card companies about lowering interest rates, and they can also balance transfers to cards with more attractive terms. According to CreditCardChaser.com, a leading credit expert, here are three great reasons consumers may want to take another look at a balance transfer for paying off their credit card debt:

Watch for the Great Deals

Credit card companies make money in several ways, including monthly interest charges. If they can convince consumers to transfer an existing balance over to their company, then they'll ultimately start making money off existing charges. They offer special promotions as an enticement, and these promotions allow consumers to accrue substantial savings. Offers are typically for zero percent interest, and the special savings last anywhere from 6 to 24 months.

The savings with this kind of special are impressive. A credit card with a balance of $2,000 and an interest rate of 24 percent could accrue an additional $40 a month in interest charges. With the balance transfer, the interest charges are eliminated. When consumers maintain the same monthly payment, the balance will drop faster to help pay the card off in record time.

Consumers may also decide to pay a balance off in full during the introductory period. To do so, simply divide the balance being transferred by the promotional period. To pay off that $2,000 balance in 18 months, consumers would need to make a payment of $111.11 every month. This can make it easier for people to stay on track and pay debt off quickly so that they can improve their financial position in the long run.

Convenience of One Payment

It can become tiresome to keep track of different cards and try to remember all the payments. Late fees start to rack up, and interest is charged on late fees once they're assessed. Consumers can transfer all of their balances to one card and enjoy the great convenience of only making one payment. Late fees are typically avoided, and that also helps bring the balance down faster. When consumers have extra money, they don't have to make a choice about which card to pay down first. They can simply make an extra payment to the one balance transfer card and watch the remaining amount fall.

Lower APR

Other credit cards typically have higher interest rates, and that can become costly. In addition to offering special promotions, balance transfer cards generally have lower interest rates. Dropping the interest rate on a $2,000 balance from 24 percent to 12 percent saves consumers $20 a month in interest charges. That savings allows people to either reduce their monthly payment or pay their balance down more quickly.

Some Caveats to Watch For

Not all balance transfers are created equal. Some have a transfer fee that can be as much as three percent of the amount transferred. However, consumers can still save money with these specials. In the case of a $2,000 balance at 24 percent interest, the balance transfer fee is only $60. That's less than two months of interest charges, so consumers still benefit.

Before transferring any balance, consumers are encouraged to check their bills for discrepancies or disputed amounts. Once these balances are transferred to another company, consumers lose the ability to dispute them and have corrections made.

There's no doubt that balance transfer cards are an important tool in the consumer arsenal. The special promotions provide people with handsome savings. People can use the savings to lower their monthly payments or to pay off the remaining debt faster. Take care to avoid charging on a card that has been paid off through a balance transfer as this can lead to higher debt levels and a more precarious financial position. However, the card that now carries the balance can be used to replace all of the smaller store credit cards for more streamlined finances and better control over debt levels.

About Credit Card Chaser:

Credit Card Chaser is an authority credit card site that offers innovative comparison tools, reviews, calculators, and reports to help consumers find the best credit card for them.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Digitization is driving a fundamental change in society that is transforming the way businesses work with their customers, their supply chains and their people. Digital transformation leverages DevOps best practices, such as Agile Parallel Development, Continuous Delivery and Agile Operations to capitalize on opportunities and create competitive differentiation in the application economy. However, information security has been notably absent from the DevOps movement. Speed doesn’t have to negat...
Leading cloud-centric IT organizations are establishing core capabilities to improve productivity, control costs and provide a highly responsive end-user experience. Key steps along this journey include creating an end-user cloud services catalog, automating workflows and provisioning, and implementing IT showback and chargeback. In his session at 19th Cloud Expo, Mark Jamensky, executive vice president of Products at Embotics, will walk attendees through an in-depth case study of enterprise I...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.