When debt is on the table, it can be tempting to look for fast, easy ways to pay it off, but make sure you know all that’s involved in your decision making process. Below are key factors to consider before making a balance transfer:

1. Compare different interest rates: Take a look at the balance transfer’s interest rate with your current rate. Do you see a major difference? If not, then the transfer may not be worth it and keeping your debt in its current account could be your best repayment option. Or, you can keep looking to find a more reasonable interest rate in a different payment plan.
2. Be aware of fees: A charge usually occurs when a balance transfer takes place. You may even have an annual fee to pay. Before you move your debt into a new account, ask yourself if these additional fees will go over the amount you would save from the new interest rate.
3. Take advantage of the promotional period: There’s a window of time where your new credit card company will charge you at a low interest rate, but once that window closes, the rate will increase. These periods can range anywhere from six to 21 months. Review that timeframe to ensure it works best with your repayment goals, or at least make a plan to pay off most of your debt in that promotional period.
4. Check your balance amount: Your credit score and credit card company policies can affect the approval of a full balance transfer. If you’re approved for a partial transfer, keep in mind that you will have to make payments on both accounts.
5. Know the penalties: When you don’t make your debt or fee payments, what happens? It’s crucial to know the specifics on what may happen in your new account. Remember to read and understand the fine print.

Once you’ve decided on a balance transfer option that works best for you, it’s time to take the steps to follow through with it:

1. Create a budget plan: Be honest about what you can pay each month. This will give you a clear understanding on what plans are most realistic for you.
2. Find offers that align with your goals: Take advantage of those promotional periods and find a plan that has zero percent interest rates.
3. Read the fine print: Once you’ve done your research and have different account options on the table, compare what you’ve found. Review which fees, penalties, and future interest rates work best for you.
4. Apply for your transfer: After you’ve found which plan works best, gather your account and current debt balance information to prepare for your balance transfer application.
5. Work towards being debt free: With your account set, stay diligent with your payments and remember financial wellbeing is on the horizon.

If you need additional assistance in your balance transfer and are looking to get out of debt efficiently and discreetly, Progressive Debt Relief is here to help. Our experienced financial experts work on debt settlements, negotiations, and counseling services to help you settle your debt for good. To find out more about our services, or to schedule a complimentary consultation, contact us today.