% balance transfers offer of 7.99%. He figured he’d save
great short term savings, $1600 the first year on his
free up money to pay down $20,000 loan, then transfer the
debt quicker, and can ultimately remaining balance to a new 0% APR
save consumers hundreds, if not credit card the next year.
thousands of dollars in interest
over their duration. However, the What he didn’t realize was that
very best 0% balance transfer its not always that easy to get
offers on the market only last 15 approved for a new 0% APR credit
months. For many, this is not card year after year, especially
enough time to completely when you have a high amount of
eliminate their credit card debt credit card debt. When it came
and they are faced with a time to transfer the $18000 left
decision: pay the new regular on his credit card, he was only
interest rate or transfer their able to get a $2000 0% balance
balance again. For most, a fixed transfer. He was stuck with
APR balance transfer credit card $16000 of credit card debt with a
never enters their mind. However, 12% interest rate and the clock
this balance transfer offer is was ticking on his other $2000 in
often the best option for many debt. Instead of a comfortable
credit card users. fixed APR of 7.99%, my
acquaintance got stuck in a
First, let me explain a 0% credit card nightmare.
balance transfer worst case
scenario. An acquaintance of mine Fixed APR balance transfer credit
thought he could save a few cards provide consumers with a
thousand dollars in student loan much better way to pay down long
interest by transferring his term debt such as student loans
balance to a 0% APR credit card. or car loans at a set interest
The student loan had a fixed APR rate. Currently, some credit card
companies are offering fixed APR transfer doesn’t remove equity
credit card rates as low as 3.99% from your home.
for the life of the balance. A
rate such as this is lower than 0% balance transfer credit cards
many student loan and car loan offer consumers great short term
rates, and can provide consumers savings. In the long run,
savings of 3% or even 10% on long however, a fixed APR credit card
term debt each year. provides a viable, interest
saving option for those looking
A fixed APR balance transfer is to reduce higher interest loans
also a good option for and credit card debt over a
individuals with high credit card period of more than 12 to 15
debt considering a second months. Imagine how much better
mortgage to pay off their high off my friend would be if he
interest credit cards. For transferred his $20000 balance to
example, a 3.99% fixed APR may be a 3.99% fixed APR credit card
lower than a second mortgage’s instead of getting greedy with 0%
interest rate and it wouldn’t APR credit cards.
involve costly refinancing fees.
More importantly, however, is the ©2006 Credit Card Depot Inc.
fact that a fixed APR balance
About the Author:
Jeff Weber is President & CEO of Credit Card Depot Inc. His primary website, http://www.credit-card-depot.com, has covered the credit card market for over two years, providing consumers with detailed credit card information and links to online credit card applications. Over 40,000 individuals visit Credit Card Depot each month.
