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Credit Education > Debt Management Help > Getting Confused in Transferring too much Balance

Getting Confused in Transferring too much Balance

By Janet Lacey
Published: Wednesday, February 10th, 2010

Managing debt through transferring debts from one credit card account to another is one of the fastest growing rackets that many people ran into. Balance transfers can even make some of the oldest borrowers and card account holders become lost in keeping in track with their unpaid balances. Transferring debts is literally like a gamble.

Some people make it on top of the system, but most of the time many individuals who chose to transfer their card balances to other card accounts end up being more indebted. It can be said that a lot of indebted individuals in their attempts to escape the interest rates of the crediting business by transferring their existing balances end up with more debts and a lowered credit score.

The greatest problem that confronts indebted individuals in transferring balances is the strong temptation of using cards to pay for expenses. In transferring current balances the credit account holder automatically opens new card account with new credit limits and even new credits available to pay for his or her expenses. A lot of people with many card accounts end up getting more debts due to changes in their lifestyles and spending attitude. An artificial feeling of being rich causes a lot of indebted individuals to be indebted more because of their new card accounts.  

Another problem of transferring balances is that it tends to make a lot of indebted individuals feel the Murphy’s Law on Money. Just like the law of gravity, it is almost sure that indebted individuals who find themselves in a down spiraling financial status cannot do anything else but to brace themselves for the impact.

Managing debt through transferring balances to new account with lower interest rates is not a secret that card companies do not know of. The too frequent balance transfers of an individual will eventually make card companies refuse full transfers of their current debt balance. After the company chose to do so, the indebted individual will have to confront multiple existing card accounts and the same high interest burden from his or her old card account. Indeed being caught in situations like this is a debt nightmare.

The last problem that transferring funds may cause to credit account holders is too much confusion. Managing debt towards a debt free life can never be achieved if the credit account holders himself or herself do not know which card he or she has transferred to and transferred from. Indebted individuals can also be misled by transferring fund debt strategy to think that they can get away from the debts that they have made.

There is no way that a crediting and financing company would allow its borrower to get away from the payments that they have agreed to pay. Even if this is a hard fact in the financial business there are still those that believe that they can outmatch the system itself. In return the credit reports and credit scores of those individuals are dramatically worsened. Living a debt free life can only be made through personal disposition and not on fund transfers which can lead to a total financial downturn.

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