Do Not Mismanage Balance Transfers
June 4, 2008
Balance transfers allows you to consolidate your high-interest rates credit card debts into a credit card with a low-interest rate. You can have the freedom to choose how long to pay your consolidated debt according to your capacity to pay. However, there are drawbacks with its use:
1. Make sure you pay the amortized balance transfers in full to avoid getting interest charges on your consolidated debt.
2. Freeze your credit cards by not using it anymore thus not accumulate further debt.
3. Use your credit card with consolidated debt sparingly so that you will only have to pay for the amortized balance transfers monthly.
4. Do not miss paying the amortization or else the bank may increase its interest rates that will defeat the purpose of your transfer.
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