Next to the internet, a credit card is arguably the greatest invention of the century. This square plastic card could cross wide geographical borders so easily. For example, an entrepreneur from England could purchase spices from a market stall in India to jumpstart an exotic foods business, and the whole transaction would not cost a plane ticket and hours of uncomfortable plane ride.
Just as the internet has made the whole world smaller, a credit card has reduced the global marketplace to one virtual trading spot where geographical boundaries are no longer a question and where physical traveling is no longer necessary in most cases.
Indeed, a credit card is a marvelous thing, one square piece of plastic that changed the way the world has conducted business. However, with such a wonderful financial invention, comes one of the biggest hurdles of mankind: the steep interest that consumers have to pay with their hard-earned dollar?
Nobody loves credit cards when it is time to pay up, especially when interest rates are unbelievably high. In fact, some consumers feel that if it can be helped, cancelling the cards altogether would be their best bet. However, since today’s fast-paced life dictates keeping a credit card; consumers could turn to another strategy instead of giving it up. They could avail of credit card balance transfers.
Getting to Know Credit Card Balance Transfers
Consumers must always make an informed choice when conducting transactions. It is important to have enough knowledge about how to manage one’s finances, especially when one faces a global economic crisis. In these modern times, it is best to be an expert in playing the money game, so that one’s hard-earned dollar may be stretched to its fullest elasticity.
In a financial context, a balance transfer is one way of starting over. It gives the card holder privilege to transfer debt or savings left in an old credit card account, to a new account at another card company. This gives the consumer the perfect and legitimate way to avoid being charged incredibly steep interest rates. The whole transfer transaction could only take a few minutes, as long as the credit card holder has already determined what card company and what package is best to grab.
This scheme has in fact become so popular among consumers that credit card hopping has gained popularity. This is the strategy wherein consumers go from one card company to another in order to avoid paying the interest rates that take effect in six or twelve months.