Everything You Need to Know About Balance Transfer Credit Cards

If you are struggling with paying off your debt, you should at least consider applying for a 0% balance transfer credit card. Doing so could end up saving you hundreds or even thousands of pounds. These cards have helped countless people in the UK get out from under their debt faster than they otherwise would have. We will thoroughly review these credit cards in this article, providing you with all of the information you need to make the right decision.

The Basics of Credit Card Balance Transfers

Once you have gotten your application for a 0% balance transfer card approved, all of your debt will be paid off by your new card provider. After the debt has been officially taken care of, you will be able to close your previous account if you so choose. If you decide to close the old account, you will be required to pay a small fee of three to six percent of the total amount that has been transferred.

You will need to submit monthly payments to the new provider to pay off your debt, but with no interest for a certain period of time. Depending on the card you get, you could be making interest-free payments for up to one year. It is important that you look at the details of each card to find out how long the 0% introductory period is. Your provider will let you know when this period is going to expire.

Finding the Right Balance Transfer Card

Before you apply for a single balance transfer card, you will have to look into your options. There are lots of these cards that you can get, but not all of them will provide you with a great overall deal. Take the time to find out how long the introductory period is for each card.

Transferring Your Balance

After you have taken the time to find the right credit card and received approval from the provider, you can transfer the balance from your old card. When you apply for the card, you will have to tell the provider how much you want to transfer and give them other relevant information. Filling out one of these applications usually doesn’t take very long. Transferring your debt to your new card shouldn’t take more than a few business days.

Transferring Your Balance to Another Person’s Card

There are some credit card providers that will be willing to let you transfer part or all of your balance to another person’s card. This could be your spouse, a friend or family member. If you are planning to do this, it is important to find someone with good credit. The better the person’s credit is, the lower your new interest rate will be after the introductory period has expired.

It is very important that you think carefully before transferring your credit card balance to another person’s card. If you fail to make your repayments, the other person will be required to take them on until your debt has been completely paid off.

Promotional APR

One of the best things about using a balance transfer card to take care of your debt is that you won’t have to pay any interest for the duration of the introductory period. You must remember that this period is only for a limited time. After the promotional period is over, you will have to start paying interest on your repayments. The amount of interest that you pay will depend on the state of your credit. It is a good idea to take a close look at your credit rating before applying for a balance transfer card.

Is it Worth the Transfer Fee?

There are a couple different questions that you will need to ask yourself before deciding whether or not a balance transfer card is worth the fee you will have to pay. There are some balance transfer cards that don’t require you to pay a fee, but most of them do.

The first thing that you have to consider is what your interest rate will be after the introductory period. If you are going to spend more with the transfer free than with your total interest, it probably isn’t going to be worth it. You also have to think about whether or not you will actually save money by keeping your balance on your current card.

Other Considerations

One of the other things that you will need to consider before applying for a balance transfer card is how doing so will impact your credit. A majority of these applications are classified as hard credit inquiries, which means that your credit will take at least a small hit. Make sure that you don’t apply for more than one card within a two or three month period.


Easy Tips for Making Your Mortgage Repayments During Difficult Times

When a person with a mortgage falls on difficult financial times, it can be difficult to make all of their payments on time. If you find yourself in this sort of situation, you will need to know how to ease your burden as much as possible. There are lots of ways that you can go about doing this, so you need to know what your options are. If you get too far behind with your mortgage payments, you could end up losing your home.

 Take a Close Look at Your Budget

You will first need to carefully examine your budget to determine where you can save money. There is a good chance that you can find numerous places to cut back on your spending, at least for a while. Whether it is your cable bill or perhaps an expensive hobby, this is something you will have to do. Tightening your belt for a while is well worth it if it means being able to keep your house.

Find Ways to Boost Your Income

It is also a good idea to look for ways to raise your income as much as possible so you can make your mortgage payments on time. Ask your employer to see if you can get some overtime at work, or even a raise. Getting a part-time job can help out a lot with supplementing your income as well. If you have a particular skill or hobby that you are good at, you might want to consider making money from it. Even a little bit of extra income each month can go a long way towards getting you through a tough financial period.

Rent out a Spare Room

While the idea of renting out a room in your home to strangers may not be very appealing, it can really help you with getting your mortgage paid off faster. It is important that you take a close look at the terms of your loan to see if this is allowed. You should always speak with your lender before taking in any renters. Take some time to consider how much you are going to charge so that you will be able to get a fair amount for the space you have. There are numerous websites online where you can post listings for a room to rent.

Take Out Another Loan

You should look into taking out another loan to help you with making your mortgage payments for the time being. This can be a very good idea if you are expecting to get a raise at work or make more money in the near future. If you think that your financial situation will stay the same for a while, you should avoid this option. One of the reasons that a lot of people are hesitant to do this is because it puts even more financial strain on them. While another personal loan can help you out, it can also work against you. Take the time to weigh and pros and cons of this before making a choice.

Contact Your Lender

If you expect to have trouble making your monthly mortgage payments, you should definitely contact your lender right away. There is a chance that they will be able to work with you to some extent. This is something that you should do regardless, because it’s always better to let your lender know what is going on. Your lender might be able to give you a longer loan term with reduced payments. You can also ask if they would be okay with you not making the next couple of payments. There is never any guarantee that your lender will be amenable in this way, but it’s still worth checking.

Turn to a Debt Counselling Agency

A debt counselling agency could really help you with getting your difficult financial situation under control as effectively as possible. Organizations like Citizens Advice can provide you with valuable information online or over the phone. Some of these services are free while others will require you to pay a fee of some kind. Take some time to explore these options so you can get the help you need right away.

Look at Your Insurance Policies

If you have an insurance policy in the event that you can no longer work, you should make a claim with your provider right away. Mortgage Payment Protection Insurance or MPPI can really be of help in this situation. Make sure that you know exactly what insurance you currently have. Your insurance could also help you out by providing you with temporary sick pay.

Anyone who is having trouble with covering their mortgage payments needs to explore every avenue available to them. The last thing you want to do is ignore the situation in hopes that it will get better, because it will likely only get worse.