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Is a 0% Credit Card Balance Transfer a good thing?

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Essentially a good way to manage your existing credit card debt is by finding a suitable credit card that offers a 0% interest rate or at least a low interest rate on a balance transfer. The best option of course is to not have debt on your credit card in the first place however if you have found yourself in that situation then by shifting your outstanding balance from one existing credit card to a new credit card can be beneficial.

This works by minimizing the interest that you pay however I must stress that you read and understand the terms and conditions and the fine print of the balance transfer from the new lender. What you need to consider and look out for include some lenders will take care of closing your previous card while others will not which could result in unpaid interest or even a default if you are not careful. Ensure and double check that the existing card has closed

Other points to consider include the balance transfer may be limited to the new credit card limit and also at the end of the term it may revert back to a “Cash Advance” percentage rate which is significantly higher.

Keeping the calculations simple however basically if you transferred $5000, closed your current card and was paying 0% on the new card you could save up to $500 in 6 months.

I jumped online to research how many lenders had offerings of 0% balance transfers and found plenty of deals so it would be worth shopping around and finding a card and balance transfer that could work for you.

Alternatively if you have found yourself in a little bit of trouble, have an existing home loan and feel that you may need to consolidate your debt to free up some cash flow make an appointment to discuss your options available.


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