Credit Action

Among the major success stories in credit cards over the last 10 years has been the 0% balance transfer offer, where clients could arrange not to pay interest charges on a credit card debt by transferring it over to a newer credit card that incurred no interest for a limited span on debt transferred onto it.

Not alone was this very popular among users, who could ward off paying interest fees on the cash they owed almost indefinitely by switching the debt from card to card, it became a hotly contested marketing point for credit card providers who sought to make available longer and longer promotions to attract brand new consumers. Alas, this scenario couldn't last forever - it was basically costing the card account providers a lot of funds in lost interest, and so the attractiveness of balance transfer deals started to be restrained by additions such as a balance transfer fee, where a preset percentage of the balance transferred onto the credit card was billed as an upfront fee.

These days, 0% balance transfers are still available, but the dwindling range of card issuers means that it's really difficult to find a different organization to shift the debt to at a zero per cent rate. What can you do if you've still got a big account balance, and wish to pay as little interest as possible? The answer is a life-of-balance transfer offer.

With these promotions, as an alternative to paying 0% for a month or two on what you owe, followed by the entire standard APR of the account once the introductory offer has expired, you agree to pay a minimal rate of about 5% APR which is preset until the amount owed has been completely paid. Regardless that you're still having to repay interest fees, these promotions are far more affordable than standard debt on a credit card, and in most cases are also much less expensive than other forms of money such as personal loans or bank account borrowing.

If at all possible, you'd take the opportunity offered by this low interest rate to target all your financial firepower on repaying the debt as quick as you can, and you definitely shouldn't buy things with your lifetime balance transfer card if you would like to get the most benefit from the low rate on offer.

So, if you have a big credit card account balance and just want to begin clearing it in the most cost-effective and affordable way possible, a balance transfer for life offer is well worth thinking about.

Article supplied by: Balance Transfer For Life