Discipline needed for credit card balance transfers
While opting for a balance transfer deal could be an ideal way for those looking to compare credit cards to get their finances under control, doing so requires discipline.
A Money-AU.com article points out that upon switching to a zero per cent credit card those borrowers who exceed their available credit limit, are late in making a payment or who miss doing so altogether could find that their card provider will impose "harsh penalties" upon them.
This, the publication claims, is an attempt by credit card firms to generate revenue on balance transfer deals which generally do not tend to be profitable for them.
"Minor mistakes can sometimes have the effect of eliminating any benefit that the borrower receives from a zero per cent balance transfer and borrowers should be careful to avoid them," Money-AU.com states.
As such, setting up a monthly direct debit was suggested as being the easiest way to avoid defaulting on payments.
In a recent Independent Weekly article, these consumers with a poor credit score were advised to make getting to grips with their credit card an area of priority.
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