Believe me, I thought long and hard before posting this entry. I was thinking about credit card debt and how easily it can pile up without you noticing it until you are swimming –nay, drowning – in it. What do you normally do when this happens?

Personally, I try to stop using the card until I have all of the outstanding balance paid off. This is easier said than done, though, as I am sure you know. There are simply times when you need to swipe that piece of plastic. Though I still believe that the best solution to credit card debt is to totally stop using the credit card for purchases – albeit temporarily – there might be other solutions that could prove to be more practical.

I am talking about a balance transfer. So what is this? It is really a simple matter – you take out another credit card that will receive all your existing credit card debt. The interest can be zero or lower than the current charges on your credit card. This could also work with another credit card that has a balance transfer program. In short, you are transferring one credit card debt to another credit card provider.

It does not sound so good, does it? However, if you take into consideration the fact that you can gain breathing space since you may be given the option to pay off the balance in several months PLUS the fact that the new interest rate is lower or even zero, then the idea of a balance transfer really makes sense.

The reason for this post is (as you may already have surmised) that I am currently up to my neck in debt with regard to my main credit card. Seriously, I do not know how it happened. It started over Christmas when I went to my hometown. It got carried over throughout January as I kept using the card for groceries and other purchases. Before I knew it, I was (and am) looking at several months’ worth of paying off my credit card bill. I am sure I can pay it off sooner or later – if I don’t make anymore purchases – but the thought of being in debt for so long and having to pay off large amounts in interest does not appeal to me. That is why I am in the market for a balance transfer right now.

In my quest for a new credit card that offers balance transfers, I realised that there are some considerations. First, my credit has to be good. There is no avoiding this. Credit card companies that offer balance transfers are quite strict on this point so if you have bad credit, forget about it. Second, the amount that I am transferring should be payable within the next 12 months at the most. Otherwise, I would end up paying more for the charges that will kick in after the zero interest period. So far I am doing good on these two points. Now I need to go scout for specific credit card balance transfer programs. Any recommendations?

 Published at :  http://www.ukmoneyblog.co.uk/

Nancy, the author of many articles regarding money and  <a href="http://www.ukmoneyblog.co.uk/?p=141">personal finance</a>and is providing his useful advice through his articles on finance for the residents of the <a href="http://www.ukmoneyblog.co.uk">UK loans</a>. Read more about <a href="http://www.ukmoneyblog.co.uk">payday loans</a> .