Balance transfers allow Cards Holers to move the outstanding balance of a credit card to another with the option to pay through EMI. While interest charges can still be applied, it will be much lower compared to high financial positions in defeated card balances, which makes it an intelligent strategy for those who fight with the credit card debt. In addition, they can be an effective way or consolidate multiple credit card debts. Let’s take a closer look.
Ease of balance of sacrifiers of the card issuer, allowing eligible cards to transfer the fees of one or more credit cards issued by different banks. While the total pending amount remains the same, the reimbursement becomes more structured, since it can opt for the EMI plans that generally range from 9 to 18 months, depending on the issuer.
If the slope is ₹ 1.20 Lakh on a card, idically, paying all the slope would be the best option. However, not doing this could result in financial positions, which can be like 50 percent PA ax, depending on the card variant together with late payment charges. More than more than, until the total amount, the amount of the balance, as well as the new transactions, will continue to attract financial charges. Balance transfer can help relieve this load.
If you choose to transfer the balance to a credit card of a different issuer and turn it into an EMI plan from six months to 1 per CET PM interest rate of the interest rate, it would result in an EMI or ₹ 20,706 for months, with total interest payment orises. Since the pending balance is eliminated from the other card, the new transactions will no longer accumulate interest, further relieved their financial burden. Therefore, transfers can be effective in managing financial loads, since their interest rates are often much lower than standard credit cards. However, keep some things into account.
Before taking advantage of the installation, you must compare interest rates and positions associated with the current interest rate against balance transfer. Some issuers can also sacrifice an EMI conversion option on your existing card, which allows you to spread the payments of a few months without transferring the balance to another card. However, conversion also comes with additional charges.
To make an informed decision, compare the total cost of both options and choose the one to sacrifice the most savings. Make sure the balance transfer is in a significant reduction in the general interest costs. In addition, this transfer comes with a unique processing rate, which must also be taken into account in its calculations. In general, the processing rate in balance transfers varies from 3 percent to 5 % of the amount transferred.
Period without interest
Some issuers also provide an introductory period without interest in which there would be no additional interest in equilibrium transfers to, for example, the first 6 months. If you opt, it is crucial to consult the amount of EMI. If you have a great balance and choose a shorter possession, EMI becomes larger, which can again strive for cash flow and replace it in the financial situation that you are trying to escape. Therefore, it is important to choose a possession that is aligned with the financial situation and make payments manageable.
You can choose to transfer the balances between the existing cards of different issuers or request a new card to take advantage of this function. In boats, the credit limit and the credit limit available will be key considerations.
While it is advisable to be disciplined with the expenses of your card and refunds, if you enter a credit card debt, the balance transfer is a viable option. Together with the balance transfer, you must also consider oysters as a personal loan or guaranteed loans as a gold loan to pay your pending credit card quotas. Compare all available options and choose the most appropriate and profitable way to pay your debt.
(The writer is a business director, credit cards, Paisabazaar)
Posted on April 28, 2025
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