Attorneys Edward Hizer and Brian Hizer

Credit Card Balance Transfers

Experienced Toledo Bankruptcy Lawyer providing Personal and Business Bankruptcy Attorney legal needs in Toledo, Northwood, Oregon, Sylvania, Lucas County, Wood County, and the surrounding Northwest Ohio communities.

Call Lawyer, Edward Schimmel at 419.693.0911

Call Lawyer, Brian Hizer at 419.841.3600

A credit card "Balance transfer" is where you use take debt owed on one or more credit cards, and transfer the debt to one credit card. This is commonly called credit card consolidation. Many people think that by transferring the debt to one card, all their problems will be solved. In many cases, this is the farthest thing from the truth.

Credit card companies draw you in with a true good to be true introductory interest rate if you transfer your credit card debt to a credit card issued by their company.

There are a few things you must consider that most people over look:

  • Introductory interest rate means temporary rate. The interest rate will dramatically increase after the introductory period is over;
  • The interest rate fees you pay for multiple credit cards may be significantly lower than that that of a large lump sum debt, especially after the introductory rate period ends;
  • If you are lat on making minimum payment, your new credit card company has the authority to end the introductory rate immediately and dramatically increase your interest rate fees, and thus making your minimum payment even higher. This may make it harder for you to manage and put your credit score in a free fall;
  • In some of the fine print, the minimum payment does not include the amount you must pay to above the interest fees in order to maintain a lower interest rate;
  • The higher your debt to one company is, may be a red mark against your credit score, as credit ratings may view it as you spending irresponsibly and thus lowering your credit score;
  • Having large lump sum credit debt may pose to be an obstacle in obtaining ne lines of credit, dealing with housing issues, auto loans, or other aspects of your life in which a credit check is routinely conducted;
  • Many people which consolidate their credit card debt to a new credit card do not cancel their old credit cards, which tempts them to still use the old credit cards, mounting additional credit card debt.

A credit card balance transfer does not solve the financial problem, but rather ignores the root of the problem. The root of the problem is spending more than what your income you have coming in. This is referred to as insufficient income to manage existing debt.

In contrast, Chapter 7 and Chapter 13 bankruptcies are effective because they address the cause of peoples' financial problems by eliminating or reducing the total amount of debt.

Instead of compounding the issue and having the effects of high credit card debt haunt you for many years, affecting your credit in a negative manner each day, a bankruptcy may help put you on the road to a financial fresh start.

Racking up interest and addition debt is no way to improve your financial standing, your credit score, or long term financial future.

Before you are agree to transfer your credit debt to a single credit card, think about what the ramifications may be to your financial well being. Speak to an experienced bankruptcy attorney and find out what you options are regarding credit card debt, that the best cource of action to help your financial future.

The bottom line is that if you have more credit card debt than you can are probably a good candidate for bankruptcy. Unlike balance transfers, a bankruptcy can get rid of credit card debt once and for all.

Brian Hizer and Edward Schimmel have the experience and resources to effectively guide you through the bankruptcy legal process. We always strive to provide the highest standard of legal representation to aggressively pursue your bankruptcy legal goals.

If you require experienced legal advice and representation from a qualified Bankruptcy Law attorney (lawyer), please call our offices to schedule a confidential legal consultation.

Call Lawyer, Edward Schimmel at 419.693.0911

Call Lawyer, Brian Hizer at 419.841.3600


CALL US TODAY AT    419.693.0911 in the Toledo / Northwood Area or 419.841.3600 in the West Toledo / Sylvania Ohio Area

Toledo Ohio and Northwest Ohio Attorneys Attorney, Edward Schimmel & Brian Hizer | Hizer & Schimmel | 419.693.0911 or 419.841.3600

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