When you can no longer balance transfer it may be time to consider a debt solution.
Balance transfers provide ideal support for short term finance problems. However, for one reason or another, the next balance transfer may not be possible. This is often true when you have completed several balance transfers over a number of years and the introductory offers expire, meaning you can’t balance transfer your debt anymore.
Balance Transferring Debt
Balance transfer is typically an introductory offer to entice you to move your debt from one credit company to another.
For instance, you may move your credit card debt, overdraft and store card where you are paying 3 rates of interest, to one new credit card with one simple monthly payment. The balance transfer could be held at 0% for 9 months. This introductory offer means you will pay no interest on this money for 9 months.
Balance transfers often incur a fee, thereafter the interest free period means the monthly repayments are going towards clearing the debt – no simply repaying the interest.
Changes to Balance Transfers
The availability of credit has reduced since the credit crunch began. Consequently increasing numbers of people are struggling to move their debt to a more affordable and manageable payment plan.
When balancing transferring debt, it’s important to have a long term plan. For example, after the introductory period, what’s next? How will you eventually become debt free again? Most importantly, is the balance transfer helping you become debt free or is it just delaying the debt problem for another time?
Once all balance transfers have been explored the next choice, if you can’t afford to repay your debt, is a debt solution. There are debt solutions available which can resolve debt and money problems when you can’t balance transfer debt anymore.
Solutions to Balance Transfer Debt
When applying for credit via the balance transfer route, a footprint is placed on your credit file. If you are rejected multiple times for credit, in a short period of time, it can alert credit agencies and make obtaining credit even harder.
There are debt solutions which make repaying the debt more manageable. Most debt solutions will help you make a monthly repayment to one organisation and some solutions can even help freeze interest and any charges incurred. Debt solutions can affect your credit rating for 6 years so the pros and cons of every solution will be explained in full detail.
If you believe you have a debt problem and that balance transferring your debt is not going to resolve the debt problem then we’re here to help. Debt Support Trust is a charity and our volunteers and advisors will be more than happy to help you with your debt problem. You can telephone us on 0800 085 0226.