Credit card balance transfer deals can help you pay off your whole balance quickly … but only if you choose the right one. In today’s post, our friends at Your Mortgage discuss currently available deals and shed some light on the traps to avoid.
If you have a higher balance ($6,000 or more) and can only afford low repayments, however, they can easily cost you more and some can have a real sting in their tail. The banks have designed the offers to tempt you in with the low rate but hit you with the really high rate while you’re still owing some money.
For this reason, if you think there’s any chance of you not paying off all your debt within the low-rate period, it’s vital to look beyond that introductory rate that’s always in huge fonts on the ads and consider both how many months the low rate lasts and the annual fee. Work out how much you have to repay each month to get to a zero balance before the higher rate kicks in, and then ask yourself whether you can really achieve this.