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Top 3 Reasons to Take Advantage of Balance Transfer Offers

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If you are looking for a simple way to manage and pay off credit card debt, a balance transfer is an option you can take advantage of to get out of debt quickly.

A balance transfer is a financial tool that allows you to consolidate debt with high interest rates into a single loan. When you transfer several balances into one loan, you can take advantage of lower interest rates, one monthly payment versus multiple, and you can pay off your debt much faster.

Let’s take a look at how you can take advantage of a balance transfer to tackle your debt and achieve financial wellness and freedom.

Benefits of a balance transfer offer

A balance transfer can be more beneficial than simply taking out a loan at the bank to pay off debt. The three main benefits you get from a balance transfer offer to help you get out of debt faster are:
  • Low interest rate. Balance transfer offers typically have a much lower interest rate than credit cards and bank loans. Many times, you can find balance transfer offers that have a promotional 0% interest rate for a set term, such as 12 months. When you take advantage of consolidating existing high interest debt with a balance transfer offer that charges a low interest rate, you end up saving a lot of interest charges. If you are still unsure of just how much of a difference you can save with a balance transfer, take a look at the interest rates on your existing credit cards.
  • Consolidate debt in one. With a balance transfer, you essentially consolidate several credit card balances into one single account. The benefit to this is that you will have one account balance versus several credit card balances, as well as one monthly payment instead of several payments. Having one single monthly payment will alleviate some of the financial strain than having multiple credit card debts.
  • Get out of debt faster.  A balance transfer will help you get out of debt quicker. When you consolidate various debts into one, you will have only one account to keep track of. And, because the interest rate is much lower, you’ll notice that your payment will reduce your balance quicker and more significantly than making the minimum payments on several credit cards.
To get a better idea of how much you can save with a balance transfer, simply use this Debt Consolidation Calculator to see the difference in monthly payments. 

Terms and rates of a balance transfer

Credit unions and banks offer balance transfer promotions, many with low introductory interests rates and terms up to 21 months. However, it’s also important to look at the terms and rates once the promotion ends.

The balance transfer promotion will save you a lot in interest during the promotional term. But if the balance is not paid in full when the promotion ends then the accrued interest will be added to the balance.

One thing that sets credit unions apart is that the variable interest rates for credit card balance transfers. Once the intro rate for the balance transfer promotion expires, the balance is capped at a much lower rate than banks and other credit card providers.

For example, the variable interest rate a credit union charges is maxed at 17.99%, while the variable interest rates that banks and other credit card providers typically charge can be as high as 20-25% or even more.

Start saving today

At Power Financial Credit Union, our members can take advantage of the best balance transfer promotions to help you get out of high interest credit card debt. In addition to our low intro rates on transfers made within 90 days, our members can benefit from our rewards program with no blackout dates on travel, no annual fee, as well as insurance protection.

Power Financial Credit Union serves almost 35,000 members in the South Florida area. Our members have easy access to secure and convenient access via mobile banking as well as banking access through our shared branching network.

Contact us now to see how you can pay off your debt faster with a balance transfer. Speak to one of our trusted advisor to take advantage of the best balance transfer offer for you.