Econ Info

Balance transfers can be a good way to knock off your debt but only if you’re concentrating on paying off what you already owe and not looking to add any more.

Remember, the point of doing a balance transfer is that you’re trying to consolidate your credit card balances or pay off your original debt using the introductory less or zero promotional interest rates on a new card than what you currently owe your present credit card company.  Many credit card companies offer zero or less interest rates to encourage you to bring them your business.  Here’s how you can use this option to your best advantage:

You Don’t Have To Make A Change. If you have a good payment history to begin with, then you can actually negotiate with your credit card company if they can give you a lower interest rate.  Consult with a manager or supervisor and request if you can get an interest rate lower or similar to the one you’re considering switching over to, especially if you have always been responsible in making your payments and have been a customer in good standing with them.  No one wants to lose out on a good business relationship and there may be special offers available that they can give you so they can continue to have you on as a customer.  You don’t have to start over with a new company.  Constantly changing credit card companies because you’re constantly bouncing your debt around can badly affect your credit score and do damage to your credit history in the long run. (more…)