Bad Credit Card Deals, Beware of Toxic Interest Rates

The biggest tempter in the credit card industry at the moment is low rate interest balance transfers, but beware the majority of these deals present some very toxic interest rates after the honeymoon is over.

Credit card balance transfer offers a very poor choice if you:

  • can’t pay back the whole outstanding balance within the transfer period
  • are likely to make new purchasers on the low interest credit card
  • ever use the credit card for a cash advance

If you find yourself becoming tempted by any of the above do not fall for the low balance transfer deal. you would be much better off shopping around for a credit card that provides an ongoing low rate . You could then ask your credit provider to transfer your high rate interest card to your new account this will give you a far better deal over time by saving you money and false reality.

Better still why not consider taking out a fixed rate personal loan it will provide you with the discipline needed to repay the whole debt without being tempted to spend up to your limit again.

Here’s Why You Need to Be Careful

A recent financial study on 90 balance transfer deals had interest rates that jumped to 15% and above at the end of the balance transfer period. With the GE eco MasterCard ripping card holders off with a massive 22.49% on new purchasers made during the transfer period. If you still owe money on this card when the balance transfer offer ends, the whole outstanding balance, along with the new purchases, will accrue interest at the 22.49% rate.

The GE eco MasterCard also has the highest rate for cash advances “also 22.49%” . You need to be very careful even some credit cards that offer a relatively low purchase rate charge interest at 21% + for cash advances so avoid using these at all costs especially at ATM machines.

If you are struggling with credit card debt and are stressed out because you can no longer cope, let Insolvency Professionals negotiate a credit card reduction for you. To find out more on reducing credit card debt contact Insolvency Professionals  now on 0417 629828.

Comments are closed.

Insolvency Professional Partners: The Migration Place | The Law Place | Irish Bentley