Dealing with Credit Card Balance Transfers that have Gone Bad

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Have you done credit card balance transfers that didn�t work out the way you expected? Did you transfer a balance to a low interest credit card and then start charging again on the card that you just paid off? If this has happened to you, you are not alone.

You do have some options for paying off these credit card balances. But first and most importantly you need to stop charging on your credit cards and if that means cutting them up or freezing them, then you need to do it. It is going to be hard to pay off your credit card balances while you are adding to them.

As long as you are making you payments on time and your interest rates are low, you should stick with your current plan, because that is your best option. You should look for a way to increase your income or decrease your expenses so that you are able to pay more than the minimum. Paying more than the minimum will decrease the amount of interest you will be paying over the life of the repayment period.

However, if your credit card company raises your interest rate above 12% you might want to check into consumer credit counseling to see if they can save you money. Keep in mind that consumer credit counseling will have an effect on your credit. It will not devastate your credit, but it may lower your credit score somewhat. If you are making your payments on time, but feel you will not be able to maintain much longer, debt counseling is a good debt option for you.

If you are several months behind on your payments, debt settlement is probably going to be your best option. Debt settlement involves either you or a debt negotiation company negotiating a reduced balance that your credit card companies are willing to accept. You must be aware that this option will negatively affect your credit, but if you have not made your payment for several months your credit has already been negatively affected. This is a good alternative to bankruptcy and will not affect you credit as much as bankruptcy.

If you have gotten in financial trouble over credit card balance transfers, there is hope, but it is going to take some discipline and some changes in your lifestyle to be able to regain control over your credit card balances.

Marjorie Salada is the owner of debtmanagement1.com, a website that contains information on debt consolidation, debt settlement, debt counseling and how to manage credit card debt.