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Top 3 Biggest Balance Transfer Mistakes

Top 3 Biggest Balance Transfer Mistakes

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Advance Personal Finance

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Balance transfer credit cards can help people get out of debt. They can also get people into worse credit card debt. Making the worst balance transfer mistakes can completely counteract all of the benefits associated with a balance transfer. If people know what they are, they can avoid them.

Make Sure That You Finish Making all of the Necessary Payments on Your Old Card

The process of paying off the balance on an older credit card can actually take around two weeks or more. There might still be another credit card bill that you have to pay during that time period. In order to avoid late payments and late fees, make sure that the balance on the old credit card is at zero.

Don’t Buy New Things With a Balance Transfer Card

You’re not going to be able to pay down the debt if you add to it by making purchases with a balance transfer card. When the intro rate is over, you are going to end up with a new balance to pay. Since most balance transfer cards have high interest rates when the intro period ends, this means that you could quickly find yourself in much worse debt.

Set Up a Plan That Will Allow You to Pay the Debt Before the Intro Period Ends

Getting six to eighteen months with credit card interest is a good deal, but it isn’t going to mean very much for people who don’t have a plan to pay off the credit card debt in the first place. You need to make sure that you make those six to eighteen months count, or you are going to be in a much worse situation by the end of the term. Since your balance transfer card is going to have a high interest rate after the introductory period is over, you are going to run into even worse credit card debt if you make this mistake.

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