Managing Credit Card Debt with 0 Balance Transfer Credit Cards: Pros, Cons, and Expert Help 

0 Balance Transfer Credit Cards

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Credit card debt can quickly become overwhelming and finding a solution can be a challenge. One option for reducing the interest you pay on credit card debt is a 0 balance transfer credit card. In this article, we will delve into how 0 balance transfer credit cards work, the advantages and disadvantages of using them, and why so many Canadians are in need of these types of cards. 

What are 0 Balance Transfer Credit Cards? 

A 0-balance transfer credit card is a type of credit card that offers a promotional period of 0% interest on the balance transferred from another credit card. This allows cardholders to save on interest payments and focus on paying down debt. The promotional period typically lasts from 6 to 24 months and then a higher interest rate applies to any remaining balance. 

Pros of 0 Balance Transfer Credit Cards: 

  • Save on Interest Payments: The most significant advantage of 0 balance transfer credit cards is the opportunity to save on interest payments, especially if you have a large balance on a high-interest credit card. 
  • Take advantage of a promotional offer: These cards often offer a promotional period of 0% interest for a set period, usually 6 to 24 months, allowing cardholders to pay down debt without incurring interest charges. 
  • Consolidate Debt: 0 balance transfer credit cards can help consolidate multiple credit card balances into one, making it easier to manage debt. 
  • Improve Credit Score: Paying off credit card debt and keeping a low balance can positively impact your credit score. 
  • Avoid Over-the-Limit Fees: Consolidating high balances onto a 0 balance transfer credit card can help avoid over-the-limit fees and other charges associated with exceeding the credit limit. 

Cons of 0 Balance Transfer Credit Cards: 

  • Transfer Fees: Some 0 balance transfer credit cards charge a transfer fee, which can be a percentage of the balance transferred or a flat fee. 
  • Higher Interest Rate After Promotional Period: The interest rate on the remaining balance after the promotional period ends can be significantly higher. 
  • If you use Transfer Credit Card for regular purchases, these are at the full interest rate and you cannot allocate payments to these charges until the transferred amount has been paid in full. 

Why are so Many Canadians in Need of debt relief?

  • High Levels of Debt: Canada has one of the highest levels of household debt in the world, with many Canadians carrying multiple credit card balances and struggling to manage debt. 
  • Rising Living Costs: The cost of living has increased in many parts of Canada, making it difficult for individuals to keep up with expenses, including credit card debt. 
  • Unexpected Expenses: Emergencies and unexpected expenses can put a strain on household finances, leading many Canadians to turn to credit cards for coverage. 
  • Easy Access to Credit: Credit cards are widely available and easy to obtain, leading many Canadians to have multiple cards with high balances. 
  • Lack of Financial Literacy: Financial literacy plays a crucial role in managing debt, and many Canadians may not fully understand the terms and conditions of their credit cards or the impact of high levels of debt on their finances. 
  • Inadequate Budgeting and Spending Habits: Without proper budgeting and spending discipline, individuals may turn to credit cards to cover expenses, leading to increasing balances and debt. 

Get Help from David Sklar & Associates: 

If you are struggling with credit card debt, David Sklar & Associates can help. As licensed insolvency trustees, they have the expertise to guide you through the process of debt relief, including debt consolidation and restructuring. They can help you understand all your options 

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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The team at David Sklar and Associates Inc are very professional and are willing to help you get out of debt. Highly recommended.
Melissa MacKenzie
12:35 29 Mar 23
I would like to thank the team at David Sklar and associates inc. for all the time and effort they put in to support this process for me. This topic can be challenging to disclose but a big thank you to Christine for going above and beyond in guiding me through all my options and supporting me through the decisions. I cannot recommend this group enough , as they have shown me compassion , knowledge , and understanding throughout the entire process. I look forward to the next step of this process and learning how the proper way of becoming financially educated through the support of their financial counselling team. For anyone who is struggling , just know that there is a wonderful group of educated professionals at David Sklar who are available to help!
Michelle Plouffe
18:45 14 Mar 23
It took me awhile to get up the courage to contact David Sklar but I’m so glad I did. Trina walked through my options with me and provided the knowledge I needed to make a decision to help turn my financial situation around. She is patient and empathetic and answered any and every question that I had. Trina provided me the reassurance I needed that I was making the best decisions for me and my family. I’m so happy that I reached out and now have a plan to get back on track.
M. Mackenzie
19:59 12 Mar 23
Trina was very helpful and thorough.
Sam M
15:26 12 Mar 23
Christine was very helpful, kind, and understanding. She explained everything thoroughly, answered any questions I had, and was responsive to any concerns I had. 100% would recommend
Katherine Campbell
17:29 08 Mar 23
Jackie Stanley is excellent she took the time to explain everything to me and I am so grateful to her for giving me a fresh financial start so if you have any doubts don’t and go see her if you want to achieve financial freedom!
Heather Helfield
21:24 06 Mar 23
Amazing friendly staff that knows what they are going. They make a difficult situation not so bad. Would give 10 stars if I could.
alie Balan
22:37 25 Feb 23
Very helpful and kind and gave me all the available options before helping me decide which one was best for me. I would definitely recommend Jackie
Alison Rivard
01:01 21 Feb 23
Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
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