Handling credit card debt through a balance transfer

Few U.S. families are strangers to debt of one form or another. From student debt to mortgages to the most insidious of them all, credit card debt, it seems many Tennessee residents owe money in one form or another, and for some households, that debt is becoming unmanageable. Thankfully, there are a variety of solutions to heavy debt loads that are not necessarily bankruptcy filings.

One of the most popular ways to handle debt is through the use of a balance transfer. Simply put, a balance transfer is the process of moving an existing balance to a new card, one with low introductory APRs and sometimes even an interest-free grace period. This can allow a consumer to considerably reduce his or her debt, as they are not being charged interest from anywhere between 3 and 21 months.

There are drawbacks to this option, of course. Most cards require a balance transfer fee equal to between 3 and 5 percent of the total balance. This means a balance of $10,000 could cost anywhere between $300 and $500 to transfer. In addition, while interest may be waived for a grace period, when it does kick in, the rate can skyrocket well over 20 percent.

The complicated nature of debt reduction can be challenging for some Tennessee families. Those who struggle with credit card debt and are seeking solutions may benefit from retaining the support of an experienced attorney. A professional can help illuminate the path to financial independence by working with the consumer to find a solution — be it balance transfer or bankruptcy — that works best for them.