Why use no balance transfer credit cards?
Many people are finding that over the years they have accumulated more than their share of credit cards. Current findings are that most people have over 6 credit cards with open balances. What this means is that you are paying all associated fees along with an interest rate on all of the cards. To cut down on the number of open credit card balances you have you can transfer some of the balances onto one or two cards and only leave those cards open. Doing this is called a balance transfer fee.
The advantages of combining the balances on the cards, or transferring balances is that each month you will only have one or two payments to make instead of the 6 (or more) that you may have now. Most institutions charge a fee to transfer the balances from one card to another. Using a no balance transfer card you can save yourself a lot of money when consolidating cards. Of course, by cutting down to one or two cards you are also saving on the total interest payments, annual fees and other charges that go along with each card on which you carry an open balance. If you are putting all of the balances on one or two cards, you are probably doing it to save money so why would you want to pay an extra fee to get it done? No balance transfer cards are the best way to go to ensure you can cut out the extra costs and not have to pay to do it.
Carrying a balance on so many cards costs a lot of money. The interest alone for 6 cards could be astounding depending on what the balances are on each card. That is even more applicable if you have more than six cards and many people do. Decide which one or two cards you want to keep and then check into doing balance transfers. Naturally, as mentioned, you are better off going with the no balance transfer cards and avoiding fees. The more card debts you can eliminate, the better.
Read the paperwork that you got with your credit cards or talk to your credit card institution about consolidating the balances on your credit cards. You will only need to speak with the institutions of the cards you are going to keep or open. Do the math yourself and find out how much you can save by only having one or two credit cards as opposed to 6, 8 or even 10. Interest payments alone would cripple most people’s budget.
Using no balance transfer cards is one more way for you to cut down on current costs. If you would have to transfer 6 accounts, for instance, that would be 6 balance transfer fees that you would have to pay, unless you go with a no balance transfer card. Since you are on the right track cutting down on the number of cards you have, go all the way by saving on balance transfer fees too.