According to statistics, the average American household carries a balance of nearly $10,000 in credit card debt. While minimum payments on $10K might seem manageable, even at a relatively low interest rate, it will take decades rather than years to pay the balance off. To make matters worse, with talk of a possible recession looming, now is probably a good time to consider consolidating balances or transferring a high-interest balance to a lower interest or zero interest balance transfer card. As with almost any credit application, the rate and term that you’ll receive on a typical balance transfer card will likely be based on your credit score. This makes it even more critical that you act sooner rather than later when debt has gotten too out of hand.
The first step, as always, is to get a copy of your credit score so that you’ll have a better idea of the cards that you should apply for. The next step is to take an honest look at your income and how much you’d be able to put toward paying down your balance each month. If your household income is still good and you believe that you would be able to pay the balance down within the introductory period allotted by the balance transfer card, then look for a credit card that offers 0% interest. However, if you know that you will be unable to get the entire amount paid off before the introductory period ends then you’ll be better off searching for a low interest, fixed-rate for the life of the balance.
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