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:
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 pay....you 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.