Is Now the Time to Transfer Your Balance?

By: Reno Charlton
It seems that with household finances getting tighter and tighter due to the global credit crunch, soaring petrol and food costs, and rising bills, now is the time to try and streamline your finances and try and cut back on your outgoings as much as possible.

According to recent figures one of the ways in which many people are doing this is by transferring their expensive credit card debts onto a 0% balance transfer credit card or a low rate life of balance transfer credit card.

Figures show that since Easter many people have been trying to transfer their balances, and it is thought that this trend will continue over the rest of the year, with many cardholders likely to spend a fair amount on keeping the kids entertained over the coming summer holidays.

There are now around forty cards that offer a 0% period of twelve months or more on balance transfers, which could suit many cardholders.

However, whilst it may make sense to transfer the balance from your expensive cards onto a low interest or 0% balance transfer credit card you need to be aware that there are now much tighter credit conditions in place due to the global credit crunch, and this means that you may not be able to get a balance transfer deal unless you have very good credit.

One official recently said: ", and have long been regarded as the fore-runners in the balance transfer market and again they are leading the pack. All of this is great news for consumers looking for a new credit card to transfer a balance. However, the recent tightening of lending criteria by lenders means all but those with the most gleaming credit profiles are accepted."

So, if you do have good credit then by comparing credit card deals and transferring your balance onto a 0% or low rate card may be an effective solution to helping you to reduce your debts and outgoings. However, if your credit is poor then you may have no other option but to try and clear the debt on your existing card as quickly as possible to avoid hefty interest charges.
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