Transferring the balance of a credit card to another to take advantage of promotional offers may sound as a good idea but it seldom is. Only those with a lot of discipline could take advantage of such offers and successfully benefit from them. But chances are that those with discipline hardly ever have high unpaid balances on their credit cards.
How Credit Card Debt Accumulates Even With Balance Transfers
Credit card debt will continue accumulating even if you transfer the balance from one card to another to benefit from a 0% APR promotional period. This is due to the fact that credit card companies will try to compensate the deficit by charging fees instead of interests, higher insurance charges, renovation costs, etc. Also, they usually have different rates for different purposes and thus, the 0% APR may be only for the transferred balance and not for new purchases that you make or the other way round.
If you make it a habit to pay only the minimum payment on your credit card, chances are that you’ll never be able to fully pay your credit card balance and your credit card debt will only continue to grow. Though there are solutions to this debt accumulation problem, the first step that you need to take is to acknowledge that unless you modify your behavior, credit card debt won’t be reduced.
Optimize Your Money Management
There are several techniques that you can learn that will help you manage your money more efficiently. These techniques are usually provided as part of the assistance supplied by credit counseling and debt counseling agencies and they include budgeting as the main method of maintaining a low debt exposure and a healthy financial life.
Budgeting is probably the first lesson that you will need to learn. You’ll have to train yourself in preparing spreadsheets and tables with your income and expenses as well as learn how to analyze this information. This will make it a lot easier to foresee future cash flow problems, so you won’t have to use your credit cards to solve them.
There are true solutions to credit card debt problems that, without doubt, do not include transferring your balance from one card to another. If you want a definite solution to your debt problems, you should better hire debt consolidation services, credit help or debt counseling so as to reduce your debt and modify your spending habits to avoid falling into the vicious circle of debt once again after obtaining some debt relief.