Transfer Credit Card Debt

If likened to a piece of money, credit cards have two different sides. The first side is the many benefits that can be obtained by using credit cards wisely. Meanwhile, the second side is a large debt that will entangle if you use it extravagantly. If the credit card bill is so large that it is difficult to pay off, there are various tips that you can use. One of them is by credit card debt transfer.

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Credit cards with their various tempting promo offers and ease of use seem to have an allure that is hard to ignore. Like a magic card, a credit card can realize your every desire to have a variety of goods you like and feel the various services or services you want. Euphoria in using credit cards, unknowingly bills swell so that you are trapped in debt with considerable interest.

Credit Card Debt Balance Transfer

Although there is an option to make a minimum payment, this is not a solution but a trap that can cause you to fall into deeper debt. Because, the minimum payment of a credit card leaves a debt, where the rest of the debt will be charged interest so that the size of your credit card bill can be multiple. One of them is by making a credit card balance transfer.

Credit card balance transfer is the process of transferring part or all of the credit card billing balance that is currently used to another credit card account. With the transfer, the balance of the old credit card bill will be paid by the new credit card issuing bank selected. As a consequence, the payment of the credit card bill balance is no longer addressed to the old credit card issuing bank, but the new credit card issuing bank used to make the balance transfer.

But please note that to make a credit card transfer balance, the condition is that you must have more than one credit card. The transfer of this billing balance must of course have an original credit card with the destination credit card. Therefore, transferring credit card billing balances cannot be done if you only have a credit card.

Why is it necessary to transfer credit card balances? In principle, the purpose of a credit card balance transfer is to avoid paying high credit card interest. Some credit cards often offer low-interest promo programs even up to 0% for a certain period, generally 3 to 6 months. Many credit card users find it difficult to pay bloated bills, so they are forced to choose a minimum payment. Even though this is not a wise choice, because the rest of the bill will be exposed to multiple interest expenses.

 By switching your credit card balance to another credit card that offers a low-interest promo program of up to 0%, your credit card interest payment burden will be reduced. However, you must pay off the credit card bill balance within the promo period. For example, the promo only limits 0% installments to only 6 months, then you have to pay off the bill within that period.

Things to consider in credit card transfer balance

Credit card balance transfer can be a profitable solution for those of you who are trapped in a large credit card bill balance, even close to the credit card limit itself. For the credit card transfer balance to be carried out profitably, it's a good idea to pay attention to the following things.

  • Balance transfer fee

The credit card balance transfer process is not free, but there is a certain amount of nominal that is charged as an administration fee. The amount of transfer balance fees for each credit card issuing bank may vary because it is based on the policies of each bank.

  • Interest rate on new credit card

Understand that the purpose of a credit card balance transfer is to reduce or even avoid interest payments. Therefore, make sure you choose a credit card with a lower interest rate than the previous credit card. Luckily if the new credit card issuing bank offers low-interest promos of up to 0% within a certain period, usually 3 to 6 months. If within that period, you can pay off the credit card bill after being transferred to a new one, then you can avoid paying high interest. However, if within that period, you have not been able to pay off, at least the normal interest charged is lower than the previous credit card.

  • Maximum balance transfer limit

Each card-issuing bank has its policies and conditions, including in terms of determining the maximum limit of balance transfers that can be made. You must pay close attention to this so that the maximum limit or limit on the new credit card can cover the balance of the old credit card bill. Generally, the maximum limit of a balance transfer is 60% to 90% of the credit limit approved by the bank.

That's a bit of information about "credit card debt transfers". Hope it is useful.


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