Debt Free News

Economists watching credit card debt transfers

January 19, 2007

Now that we are all reading about the economy’s slow down and financial issue surrounding many consumers and their debt, we want our debt free readers to read this new news tidbit announced toady.

Even though many of our debt free advocates are seeing their credit card companies advertising new lower interest rated credit card balance transfers, many economists warn that this is simply not in any debt free wannabe’s personal interest. Even though many of us have a lot of credit card debt, do not fall into the pit when it comes to balance transfers without treading the fine print – there you will see that rates rise after an introductory period. More so, the post introductory rates are typically more than you would pay on existing credit card debt.

Economists are in the news today to warn consumers about the fast growing need to get rid of (or so you think) high rated credit card debt. According to today’s debt report, credit card debt rose to over $38 billion in November of 2006. This is a new record that is seemingly going to continue to rise.
Additionally., we want our debt free achievers out there to know that even though we saw higher interest rates spike from the fact that there were actually 3 interest rate spikes last year, that many consumers will most likely find themselves seeking out these sneaky low interest rate balance transfers they are provided by some banks.

We see it as this - in a junked up finance market, introductory rates and other seemingly proactive deals are now getting more and more common. This is how many credit card companies respond to a slow down of credit card debt. People have charged too much now they are holding back and they are finding that even though they are holding back – they are in over their heads – or so they think. The4se are the same consumers who run out and get a debt consolidation loan too early or they transfer all their currently credit card debt to a new account with an introductory low rate – that rate disappears and the consumer is further in debt due to paying a higher rate on a large balance.

Economists are sounding off and we want our debt free readers to hear it loud and clear. Be sure you have all your ducks in a row before you get into any new seemingly good rate deal. The fine print is fine print for a reason.

In a nut shell – we want all of our debt free article readers to understand their credit card debt in full before transferring the debt balance to any new provider. Even if the rate in not introductory and fixed – there are many times other fees and charges that will stun you when you do not see them coming.

Remember, nothing is for free. Watch the bottom line always and be in the know when trying to become debt free. It is one of the hardest things to achieve – but if you know the right things to do and when to do them – economists think you will be in a better situation to achieve your debt free goals in life.

Here is one last fact we will leave our debt free readers with regarding this news article. According to the report in today’s financial news, there are at least fifty cards available at this time (under 4% interest rate) that offer these balance transfers. Consider this is a flooded market folks. They are everywhere. Watch the fine print – four percent is too good to be true unless your credit is flawless that is.

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