If you’re one of the many people out there living under a pile of
debt from old, unpaid credit card bills, you need to act fast and
resolve the problem before collection agencies start calling you and a
debt collection lawyer in California files a case against you.
The debt you need to pay off covers the original
price of the item and the interest that comes along with it every month.
With each month that the bill goes unpaid, its corresponding interest
will also become higher and higher, hence why you will end up paying
more if you have overdue bills.
Balance transfer
To
stop a growing credit card debt, people often go to banks and ask if
they offer cards that have 0% promotional APRs and allow balance
transfers. Basically, this card pays off the existing credit card
balance by transferring the amount to the new card. Since the card has
0% APR for a certain time, it keeps the balance from growing.
The
cardholder will, however, be charged with a one-time transfer fee,
which is usually around 3% to 5% of the balance. Card holders have to
pay off a minimum fee every month, like all other credit cards, and can
use their balance transfer card as a regular credit card and charge
purchases on it.
Save money
First,
it’s important to understand that you’re looking for a transfer card
because you want to fix your credit problems and get rid of your
existing debt. You have to create a plan that will focus on minimizing
expenses, maximizing how much you make, and making sure that you
regularly pay your credit bill and aim to finish it off before the
balance transfer card’s promotional APR ends. You can also save a lot of
money with promotions that these balance transfer cards offer. Some
balance transfer cards will give you no transfer fees for the next few
months, which means that your debt is not going to grow if you transfer
it to the new card within that certain amount of time.
Save your credit score
Your
credit score has already taken plenty of damage from your previous
debt. Late payments will give you mark downs and will negatively affect
your credit score. It will become worse when you have a case from a debt
collection lawyer in California. By transferring your debt to a new
card and making sure that you pay off your monthly dues, you’re in a
better position to rebuild and repair your credit score.