Debt Relief Through Balance Transfer Credit Cards

Unfortunately, due to the financial recession

, many consumers are currently facing more debt than they know how to deal with. However, it seems as though all the help out there for Americans has some bad side effect to go with it. After looking at debt consolidation, many Americans find out that it may hurt their credit and decide that it may not be their best option. The same goes for debt settlement! But, what if there was a way to get relief from debt without having to close credit cards and harm credit scores?

There is! This option comes by way of balance transfer credit cards. I know what many Americans may be thinking "I'm trying to get out of debt, why should I get a new charge card account?". The key is understanding balance transfer credit cards and the financial benefits they may provide.

Balance transfer credit cards work just like any other charge card accounts. They are small pieces of plastic with a magnetic strip that attaches that card to the account holder. Balance transfer charge cards can be used for purchases and cash advances. However, as a debt relief option, Americans should use balance transfer credit card accounts to transfer balances. That's right, these charge cards allow people to use them to pay off higher interest rate balances.

In most cases, balance transfer credit cards come with introductory annual percentage rates. Introductory annual percentage rates are low annual percentage rates usually between 0% and 2.9%. These interest rates will be applied to the balance for the introductory period. Usually introductory periods start the day the account is opened and end within 6 to 12 months. In some cases however, consumers may be able to find 0% introductory interest rates for as long as 18 months.

This is huge for Americans facing financial hardship due to overwhelming revolving debt. The process is simple. First, Americans will have to compare balance transfer credit card account options and apply for the best option available. Next, simply use the new balance transfer charge card to transfer as much debt as possible to the new low annual percentage rate. This introductory APR period has helped thousands of consumers with reducing credit card debt.

Although balance transfer credit card accounts are a viable form of debt relief, there are a few things that Americans should look out for when looking for a new balance transfer charge card account:

Introductory APRs: Before applying for a balance transfer credit card for debt relief, Americans should make sure that they will be receiving a low introductory APR.

Standard APRs: Before applying for a balance transfer credit card for debt relief purposes, people should be aware of the standard annual percentage rate on the account. In most cases, when the introductory period is over, all balances will be moved to the standard interest rate. Therefore, if people apply for a new charge card that has a higher standard APR than the old one, they may be getting themselves in a worse situation.

Transfer fees: Most balance transfer charge card accounts come with transfer fees that range from 3% to 6%. It is important that the savings provided by the introductory APR outweighs the cost of the transfer fee.

by: SEO Daddy-O

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