Balance Transfers, Are They Your Friend?

The balance transfer can be a useful tool in eliminating the interest that you are currently paying on your credit cards. All you have to do is read your current credit card agreement, and make sure you will not be penalized, for a balance transfer, and use another credit card that will allow you to transfer your balance to it.

For the sake of an example, let's say that you have a credit card with a balance of $9,000.00, and a minimum monthly payment of $250.00, and that your interest rate is 16%. That means for every $250.00 payment, you will be paying $120.00 in interest.

If you could get a balance transfer for six months, no interest, it would mean that for five months, you would be applying $1,250.00 against the principle, instead of $650.00. See how fast you would decrease you credit balance.

During the fifth month, you would look for another credit card that you could repeat the process. You do it over and over, so that you end up not paying any interest at all! The goal is to pay off your credit cards, save your credit rating, and become debt free.

In order to get out of debt, you must stop charging on your credit cards, and make sure that every penny that you pay on them goes to the principle, and not interest. Balance transfer is one of the best methods that I know, to make sure you apply the maximum to your principle with each payment. Good luck on your next balance transfer.

Roy Miller, Jr., is the author of "BEYOND THE VALLEY OF DEBT." How you can get out of personal consumer credit card debt, and live debt free forever, without increasing your income, borrowing money, filing bankruptcy, or paying for credit counseling.

CREDIT CARD DEBT