Nowadays balance transfer credit cards have become more popular as way for consumers to lower rates and payments on their debts. Mortgages are harder to qualify for and home equity lines are reserved for elite borrowers with tons of equity.  Without the mortgage crutch, consumers are held hostage to the higher rates and payments that credit cards offered them in the past in exchange for their convenience. Balance transfer credit card issuers are attracting new customers in droves by offering lower rates and payments for an introductory period on balance transfers.

As with anything, the devil is in the details. Chances are, the credit card you want to transfer your balance to isn’t any better than the one you already have after the introductory period expires.  So why do we still make the transfer? It’s usually because we have made up our mind that we are going to pay off, or pay down the balance we have during the introductory period. Or, we simply need the payment break, however. Just as in Vegas, the house knows the odds, and odds are that you won’t pay your balance down or off. This brings us back to square one, or worse.

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