Slash Credit Card Payments with a Tactical Balance Transfer

There is more than a little irony surrounding the fact that we Britons are absolutely up to our eyeballs in consumer debt, even after all of the trouble that our credit addiction caused us back in 2008. Undoubtedly the credit crunch frightened the mainstream lenders into becoming much more cautious about dishing out credit to anybody but those with the whitest of white credit scores, but we consumers have still managed to saddle ourselves with record levels of consumer debt, which exceeds that of even pre-crash levels. The difference now is that a majority of us are simply carrying a greater degree of higher-interest debt, particularly in the form of credit cards, which has made climbing out of debt a much more slippery and tricky business.

The credit card shuffle

Many savvy consumers who are saddled with credit card debt have become well versed in the art of regularly transferring their debt from card to card, in a little dance which has been coined the credit card shuffle. By transferring your existing credit card debt to a new one, via a balance transfer, it is possible to drastically speed up the repayment of your debts, seeing as potentially all of your repayments will be paid into clearing your debt directly, rather than the interest. For those with smaller levels of debt, a low interest or 0% interest balance transfer card could allow you to quickly clear your debt and get back into the black, whilst those with much larger, long-term credit card debts will be able to spend the hundreds that they may have been spending on interest payments each month on chipping away at their debt instead.

Balance transfer options will vary between cards and applicants

There are a number of different options available to consumers, although access to balance transfer credit cards may vary depending on the credit score, salary, and debt level of the applicant. Some balance transfer offers will allow consumers to switch over their debt with no transfer fees, whilst for others you will incur a charge of around 2% of the debt to be transferred for example. It will also vary between cards how long your interest free period lasts for, with some cards offering the consumer a 0% interest 6 month free period whilst others may offer up to 18 months. It should be mentioned however that it is imperative that you make at least the minimum monthly payments on your new credit card because if you miss a payment, you will lose your 0% interest deal and get a charge for good measure.

Be careful not to mistime your moves!

If used carefully, credit cards can be a fantastic method of borrowing money at very low interest or even 0% interest, with no fees and no fuss. However if you get it wrong, you could quickly find yourself with burned fingers and carrying a lot of expensive debt around your neck. As with any form of dance, the credit card shuffle is one which will require you to pay attention to the small details. Be sure to make a note on your calendar of which month your interest free balance transfer deal is set to end, and set your repayment plans around this accordingly.