The Pros and Cons of Balance Transfers
More American households are relying on credit cards to make ends meet, and the average interest rate is running north of 23%. To top it off, as an individual’s credit card balances increase, the credit score drops – making it harder to get the best rate on big purchase loans, such as a home or automobile. 
This has made credit card balance transfers more popular than ever, as a means to avoid mounting interest rate charges, and focus more on paying down debt. Let’s take a look at the pros and cons of balance transfers.
The Pros
Save on Interest Rates: Balance transfer offers typically come with a low or zero percent APR for a set period of time. Ultimately, look to transfer high-interest debt to a no-interest card.
Pay Down Debt Quickly: This provides an opportunity to stop paying interest and have more of your hard-earned cash go toward paying down debt.
The Cons
Balance Transfer Fee: A balance transfer usually comes with a one-time fee of 3% to 5% of the amount transferred. For example, a $3,000 transfer may be billed a 3% fee of $90, and the total balance would then be $3,090.
The Introductory Rate is Temporary: The promotional period may run anywhere from six to 21 months. Make sure you know the terms that are offered – and ideally – aim for paying off the balance transfer before the introductory rate expires. 
Know Your Habits: It takes real discipline to pay down debt. Don’t let yourself be tempted into running up cards again that you just paid down via the balance transfer!
Whether you’re a homeowner interested in leveraging your home equity to eliminate that high-interest credit card debt entirely – or a first-time buyer seeking to build wealth through homeownership – we have a wide variety of loan programs, and the expertise to help you plan for success! Please give me a call if you feel we may be of service to you or your friends.