If you’re dealing with debt after your 0% balance transfer APR offer ends, it might feel like an overwhelming problem. But there are options that can help.
While transferring your high-interest debt to another credit card with lower rates can be a smart tactic, there are other debt consolidation strategies you might want to consider. Here are some options.
- Transfer your balance to a new 0% APR card
- Apply for a personal loan
- Find a credit counselor
- Reach out to friends or family
Transfer your balance to a new 0% APR card
When one 0% balance transfer APR ends, you might be able to find a new card with a similar offer to manage leftover debt.
If you found your 0% APR offer useful and want to do another balance transfer, there might be options available. Here’s what to do:
- Make sure you’re eligible: Many 0% APR offers don’t apply if you’re transferring your balance from another account with that issuer. Check the fine print to see if your new card allows you to transfer at that desired rate.
- Check the fees: Depending on the amount you want to transfer, the cost of your balance transfer fee might be greater than the amount you’d save in interest payments.
- Make a plan for repayment: Balance transfers are easier to manage when you have a clear plan to pay off your debt. Consider how much you’ll need to pay, and create a budget to help.
Apply for a personal loan
A personal loan can consolidate your debts into a single payment, often with a lower interest rate than your credit cards. Here’s what to do:
- Compare interest rates: Shopping around with multiple lenders can help you save money on your loan.
- Evaluate loan terms: Look for loans with term lengths that match your ability to repay.
- Understand fees: Even if your interest rate is lower than what you’ll find from a credit card, additional fees can cost you. Look out for origination fees and other add-ons that might apply.
Find a credit counselor
Working with a reputable credit counseling agency can help you manage your debt more effectively. Take these steps:
- Research agencies: Ensure the organization is reputable and certified. A good option will send you free information before you explain anything about your situation, and they won’t promise you too much.
- Understand the plan: Before choosing an option, get a clear picture of how the agency will help manage your debts. A legitimate agency will tailor your plan to your unique situation.
- Review potential fees: Be aware of any charges for the services provided. A good credit counselor will make all the costs clear upfront.
Reach out to friends or family
Borrowing money from someone you know can provide a low-interest solution to your debt. But think through all the possible consequences for your relationship.
- Agree on terms: Clearly document all loan terms to avoid future misunderstandings. You’re still making a financial agreement, even if it’s not with a formal lender.
- Discuss repayment plans: Develop a solid plan for repayment that both parties agree on. That way, you’ll all know what’s expected of each other.
Consider the relationship: Money can complicate a relationship even when everything proceeds as planned. Before coming to an agreement, consider if the benefits of the loan are worth that potential impact.