Life of Balance Transfer Credit Cards

How to use a life of balance transfer credit card...

Transfer existing credit card balances to a life of balance credit card and you can put high interest debts into a low interest account and start to focus on actually clearing your balance.

No more stretching your salary to pay off store cards, or remembering to switch your latest 0% credit card before the standard interest rate kicks in.

Pay back what you can comfortably afford to each month, and with a low rate for the life of the balance, your debt will soon disappear.

Making the most of your card:

- Make the move
The sooner you get the balance transferred, the sooner you can breathe a sigh of relief and start enjoying lower interest charges. But remember, most card issuers only offer a limited timeframe in which to move the balance to qualify for the low rate.

It is easiest, and probably the best idea, to transfer your balance at the time of your online application (there will be an option for this). Failing this, fill out and send off the 'Balance transfer form' that you should receive when your new card is sent out. If, however, you are reading this having surpassed both these options you can always use telephone banking or online banking.

- Pay what you can afford
Now you are free from crippling monthly repayments and have a low rate and a long period of time in which to pay your balance, use it wisely. Pay as much as you can afford each month to clear the debt, but don't feel under pressure to pay off the debt quickly.

Things to watch out for:

- The urge to spend
It is tempting to spend on a new credit card and many companies try to coerce you in with 'rewards' and 'cash back'. However, it can be extremely dangerous to spend on balance transfer credit cards and we would advise against it.

If, however, you absolutely must purchase, make sure that you are fully aware of the terms and conditions of the card. Know the APR for spending, and the details of any introductory purchase rates. Be especially aware of the order in which your credit card company will make you pay back your debts.

It is common practice for credit card companies to prioritise payments in order of interest, from low to high. Meaning that any expensive credit card purchases will be left to accrue hefty interest charges while you struggle to pay off the low rate balance transfer.

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