Credit card is one common means of people nowadays in dealing with their purchases, shopping, etc. But having credit cards entail some trouble too especially when we forget to monitor our charges. In the Philippines, uses of credit cards increases especially with the recent holidays. Some are responsible enough to go only with their budget or limitation but others go beyond it.
It is kind of hard to have a huge outstanding balance in our billing. Yes maybe we can pay the minimum payment required but the bottom line in this issue is that our payment is being eaten by the interest. High outstanding balance will entail high interest. In the Philippines, most credit card providers charged 3.5% per month of the outstanding balance. If we will only pay the minimum payment much of that will go to the interest and minimal of that goes to the principal outstanding balance.
Credit card holders with no capacity to pay in full the outstanding balance must immediately outsource on possible means to pay off the balance the soonest possible time. One way to do it is thru Balance Transfer. It is a promo of credit card companies where you can transfer the balance of your other credit card to theirs at a lower interest per month. You can pay in full the balance of one credit card and pay the transfer at a much affordable amortization within a year or two and get away from the high interest eating your money.
What good this kind of promo brings? Of course we can pay in full the outstanding balance of our other credit card thus cleaning up our obligation with that bank. We will only pay a fix monthly amortization in a given period of time. The promo has a lower interest rate as compared to regular credit card interest charges.
Having a huge outstanding credit card balance is not ideal but a Balance Transfer Promo is one of the ways where we can settle the balance immediately and reasonably.