Inflation and the rise in interest rates have greatly contributed to increasing Quebecers’ level of indebtedness.
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This rise in the cost of living has caused many households to change the way they use credit, and to use credit cards more often.
When a person finds themselves with an outstanding balance on several credit cards, the interest rates on these, often at an annual rate of 20 to 23%, can cause the debts to grow quickly.
It is then time to think regarding consolidating your debts.
Be careful, however, you should not wait until it is too late before thinking regarding debt consolidation.
“If we wait too late and your credit rating is no longer good, you will not be approved for debt consolidation,” warns Julien Brault, co-founder and CEO of Hardbacon.
The line of credit and the mortgage line of credit, with their generally low interest rates, remain an option of choice for debt consolidation.
But with their balance transfer promotions, sometimes offering 0% interest for several months, some credit cards can be an attractive alternative.
“The idea is that if we are able to pay fewer fees, less interest, we can repay the debt more quickly,” explains Mr. Brault.
Here are 5 great credit cards for balance transfers:
1. Scotland minimum visa
This card is interesting because of the special offer currently in effect.
The interest rate for balance transfers is 0% for the first six months and there is no annual fee for the first year.
Once the special offer ends, the interest rate increases to 12.99% and an annual fee of $29 is charged.
2. CIBC Visa Select
With a welcome offer that provides 0% interest for up to 10 months, but a 1% transfer fee, this card may be attractive for those who expect to pay off their debts in less time. a year.
The interest rate then increases to 13.99%.
The welcome offer for this card also includes a reimbursement of the annual fee of $29 for the first year.
3. BMO Preferred Rate Mastercard
This credit card also comes with an attractive welcome offer.
The interest rate for balance transfers is 0.99% for 9 months, but a 2% transfer fee applies.
The annual fee of $20 is also reimbursed the first year.
4. Mastercard BMO Remises
This card’s welcome offer also makes it attractive since it offers a 0.99% interest rate on balance transfers for nine months, with a 2% balance transfer fee.
However, make sure to pay off your balance quickly, since the interest rate drops to 20.99% at the end of the promotion.
It should be noted that this credit card has no annual fee.
5. Flexi Visa Desjardins
This credit card can be a good option for people who already know that it will take them more than a year to repay their debts since its regular rate is among the lowest, at 10.9%.
The card also has no annual fee.
