Many families all over the world have credit card debt. Credit cards are a good way to get access to extra money that you don’t have on hand right now, but relying too heavily on them is a good way to end up with an unexpectedly high amount of credit card debt. If you currently have so much credit card debt that you’re barely making an indent into your balance every month, a balance transfer card like the Citi Simplicity card could be a good option. Here are a few of the benefits that a balance transfer card can offer.
1. A Way to Pay Off High-Interest Credit Card Debt
One of the reasons credit cards can be so dangerous for debt is because the interest rates can be extremely high. High-interest credit card debt is very common, and it can completely destroy the amount you’re able to put toward paying off the debt every month. A balance transfer credit card can give you low or 0% APR on your balance transfer for a period of time.
2. May Offer an Introductory APR on Future Purchases
Most commonly, balance transfer credit cards are geared toward helping you avoid some amount of interest on your purchases. The Citi Simplicity card, for example, offers 12 months of introductory 0% APR on new purchases. That means if you have a large purchase coming up, you might want to put it on this card to pay it off over time with no interest.
3. Commonly Doesn’t Have an Annual Fee
It’s very common for balance transfer credit cards not to come with an annual fee. You’ll likely pay a percentage fee when you transfer the balance from your old credit card to the new one, but it’s less common to have to pay a yearly fee to keep the card open. That means you’re not losing any money just by having the card open, and you can put that money toward paying off your balance.
4. Allows You to Consolidate Debt
You don’t have to just transfer balances from a single credit card to the new card. Many balance credit cards allow you to consolidate debt from a variety of credit cards. This can make it easier for you to make your monthly payments and avoid forgetting a payment for one of the credit cards that you have open. This debt consolidation is a great way to manage your current debt.
Families often suffer the most from credit card debt, as it can be even more difficult to routinely make more than minimum payments when you have extra expenses as a family. This is why balance transfer credit cards can be so helpful for many people. If you’re looking to invest in a balance transfer credit card, make sure you do some research first. It’s also a good idea to have a plan for how you’re going to pay off the whole balance over the introductory APR period.