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Transferring your credit card from a high-interest account to an account with lower interest might seem like the answer to your debt problems. But before you jump to conclusions and transfer your credit card balance, you need to know the finer points and the underlying pitfalls that your credit card issuer has planned for you. Your ignorance in this matter could cost you more than your actual debt. But do not fret, you will not fall into the trap of your credit card issuer if you do a little homework and balance transfer is only beneficial if you do it right. Below are some tips for credit card balance transfer that you can take into account before transferring your balance.

Evaluate the Interest Rates

The reason why balance transfer is encouraged by all credit card issuers is that it benefits them in the long term. These issuers will probably lure you in by giving to low-interest rates for the first few months but after that, the interest rates are more than likely to increase. If the interest rates for your new credit card account is about 2-4 percent than chances are they will increase to 9 -10 percent after twelve or sixteen months. As a result, you will find yourself in debt again after a year but you can still manage to get the most out of your balance transfer if you use it solely for paying off your previous debt.

Determine the reason behind your Debt

Figuring out the real reason why you got yourself into the debt should be your primary step in the balance transfer. You may be able to save a few dollars but it will become harder for your credit score in the long run. It might be advantageous to you if you consult a credit counselor before transferring the balance and create a budget. It is also advisable if you cut back on spending and consider paying off your debts instead.

Consider the Balance transfer Fees

Most credit card issuers charge a 3 to 5 percent of the amount transferred as the transferring fee. And if you are already in debt, this can probably wipe out any savings that you might possibly have in your account. While some credit card issuers may not charge balance transfer fee, others can charge a high sum as much as 9.9 percent of the amount transferred as well.

Look for best Terms and Rates

If you make a hasty decision and get lured in by the teaser rates that allow lower interest rates initially but increases the rates of interest significantly after the promotional period’s end, you may find out that you are still stuck in debt even after the balance transfer. It is important to shop around and look for the transfer offer that has the best rates and terms for you. It is recommended that you consider the rated which will be of benefit to you in the long run even if they look expensive at first.