Saving Money by Transferring Credit Card Balances to Low Rate Offers

It is a tricky situation and requires lot of thinking before we decide to transfer credit card balance from one card to another. It is highly imperative not to get swayed by the gimmicks of the credit card companies and really think whether you will be saving money or losing money in the whole process. Saving Money by transferring credit card balances to low rate offers is what one desires to achieve, but how many are really successful is still a mystery.
So how can we decide on the same?? Let’s see if the decision of transferring credit card balances would be wise or not.

It is common for most of us to transfer the balances of a high interest rate credit card to a lower hoping that in the bargain we will save money and also one gets taken in by the marketing strategies of the credit card companies. Maybe in the long run you will be able to save some money but it is highly influenced by what transfer fees and the annual fees that you will be paying to the new credit card company. With the advent of internet it is also convenient to check the same by the online calculators available; which allows us to come to the conclusion whether we are saving or not. What you required to get the right amount is the below figures.

• The interest rate you are currently paying and the balance amount you wish to transfer
• Rate of interest and term of the new credit card company
• The annual percentage rate for the balance transfers
• Any other annual fee or hidden charges
• The last but not least balance transfer fee applicable

The above figures if input accurately will give you the total savings that you will derive and can help you in taking the decision whether your intention of Saving Money by transferring credit card balances to low rate offers is successful or not.

If you divide the annual savings with the transfer fees, you can come to a figure and conclusion as to it would take how much time before you really start saving money. So though the rate of interest may be low, the truth is in the long run you get to save little and that too after many years. Also to be honest there are no thumb rule as to whether you save money or you do not in case of transferring credit card balances to low rate offers. As there are so many different rates and transfer fees offered by the Credit Card Company and sometimes even hidden charges which are given as surprise once we conclude the deal. This makes it difficult to come to a conclusion quickly but of course online calculators and your own calculation does help us in coming to an approximate figure.

Also there is no need to be wary of these calculations either in checking with your credit card company or you yourself doing the same. As it is a known fact that without calculation you do not know the extent of your liabilities and the ways to manage the same. Also it is the quickest way for you to know whether you will be saving money by transferring credit card balances to low rate offers. So beware next time when you get this attractive offer you know where to draw the line.

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