Balance Transfer Credit Card Deals - Debt's Main Enemies

After the winter holiday season is over many credit card holders accrue a considerable debt on their plastics. According to the latest surveys, about 2.6 million credit consumers with debts are planning to apply for new credit card deals this year. Balance transfer plastics head the list of the next to-be credit cards.

Over 2 million delinquent credit card accounts are to be transferred onto new plastics in 2008. The statistics shows that young people are more into changing their credit card deals. About 13% of people aged 25-34 are going to transfer their credit card debts to new cards this January in order to benefit from 0% promotional interest rates.

People are not just wringing hands in despair once they see their after-holiday credit card bills. They fight their Christmas debt hangover by hook or by crook.

Shifting your credit card balance to another plastic is one of the best way outs in a situation like this. Many credit card deals come with a 0% introductory period, which can last up to 15 months. All you need to do is just browse through credit card offers and find the right one with the longest promotional period. This will greatly help you to save money on interest.

Balance transfer cards are especially good for people with debts on several plastics. You can consolidate all of your debts on one credit card. But remember to make sure that your new balance transfer card's credit limit is big enough to fit all your delinquent balances.

But the recent research shows that about 6.6 million people are not going to close their existing accounts with debts, despite of the fact that their current credit cards' rates are pretty high (around 17% in the average). How do they explain this? The answer is simple. They are afraid to damage their credit history. You, most probably, know that closing of a credit card account will be reflected in your credit report right away.

Actually, they should better beware of getting into larger debts. If you find an appropriate balance transfer plastic, carefully read all card's terms and conditions, and bear in mind that your main goal is to get rid of outstanding debts, you will succeed. And you even might improve your credit history.

What you should pay special attention to, while making a balance transfer credit card deal, is a balance transfer fee. It is a one-time payment that the bank charges for transferring your balance. This fee, as a rule, makes up 3%. So, if you need to shift, say a $ 1,000, it will cost you $ 30. Yes, it is not some $ 3. But still, it is much more profitable that paying enormous interest.

And remember the golden rule of balance transfer card use: avoid making purchases with this plastic. Neither should you buy anything with your old credit card from which you have transferred your balance. Otherwise, the bill for purchases will be attached to your balance and you will have to keep paying high interest rate until you eliminate your debt.

So, if you stick to the simple rules of wise balance transfer cards use, your debt will vanish into thin air before you say Jack Robinson.