Transferring a high interest credit card balance to one with a better interest rate and/or better overall terms and features is usually a good way to reduce the amount of money you pay back on your existing debt. Depending on the “better” credit card you select, you may also be able to benefit from a rewards program or gain other features you didn't already have – including travel accident insurance coverage or an extended warranty program for new purchases made with the card. There are a few instances when a balance transfer is not the great deal it appears at first glance though, so it's important to do your research before moving your accounts around.

Step One: Find a better credit card with a balance transfer offer.

There is no point moving money from one credit card to another unless you are going to benefit from it in some way. Sometimes people are mislead by the introductory rates and promotional offers – so it is important that you dig a little beneath the surface to see what sort of rates you'll be charged once the promotional period ends.

When looking at possible cards to replace your existing credit card, make sure you find out the following information in order to make an accurate comparison between your existing card and the new card:

What is the introductory rate and when does it end? Does the introductory rate apply to new purchases only? Does it apply to balance transfers? What is the cards APR (annual percentage rate) once the introductory offer is over? Does the card have an annual fee? How much is it?

This is an important consideration when looking at a card to move your existing balances to - What does the card charge for a balance transfer fee? Many cards charge 3-4% fees for transferring balances. If you've got a $4,000 balance on your card that you're moving to a new card, you're looking at a fee between $120 and $160 just to move the balance. If you're going to pay a balance transfer fee, you're going to need to save a whole lot of money in interest over the life of the balance on the new card in order to make that fee worth it.

Step Two: What are your chances of getting approved for the new card?

Just because a credit card offers a 0% or 2% interest rate on balance transfers does not mean that you will be approved for that offer. Cards always put their best foot forward; but sometimes people are approved for the cards under different terms, based on their credit scores and payment histories. Take a close look, because often the credit card you apply for will tell you that if you don't qualify for the terms of the offer they will issue you a credit card with higher interest rates or different overall terms. If this happens, will the higher rates be beneficial to you, or will you just end up with a second credit card that charges a fortune in fees and interest and the temptation to spend more because you have a new credit line available?

Step Three: Apply

If you find a card with a great offer that you've compared closely to your existing card and feel that you will save money through the new, lower interest rate and/or through the rewards program the new card offers – AND you've considered your realistic chance of being approved for that card and all seems ready to go; it's time to apply.

When applying for the new card, make sure to fill out the balance transfer portion at the time of application. The reason for this is sometimes the balance transfer offers are only good for immediate balance transfers that occur at the time of account opening. Balance transfers that are initiated later may be considered a cash advance and do not enjoy the same promotional terms your initial transfers do.

Step Four: Stop Using Old Card

If you've transferred the balance to a new and improved credit card, stop using your old credit card. Cut it up or put it away so you aren't tempted to charge on it. If you transfer the balance and then continue to use your old card, you've completely defeated the purpose of moving the money and now have TWO credit cards to pay off! Read the full Story...

Many people across the country have found they need a second income to survive. While many will take a weekend or evening job in addition to a full-time gig in order to get by, many other entrepreneurial types will be trying their hand at starting a side business, based on a hobby or passion they have for their particular talent. Whether it be a business involving crafts, accounting, cooking, or any of the many other ideas people are developing, it is very important to remember that there is always a potential for these little side business to grow quickly into a profitable and legitimate business or career.
In fact, many freelancers and small business owners will tell you that the potential earnings from a small side business will far out weigh what can be earned at a part time job. When you combine the earnings from a side business run out of your home with the savings you have not having to drive to a part time job or prepare lunches to take to the second job (or even more savings if you normally buy lunches when you're working) the amount earned from a side business is far greater.
Side Business is a Full Time Effort
With any self-starting business or business in general, it is essential that the operation runs as smoothly as possible. Because one of the goals of most entrepreneurs is to make a profit, money management is a huge responsibility, no matter how small the business may be. Maintaining accurate financial records are very important for tax reasons, growth preparations, and for the bottom line of profit. Businesses who spend more than they earn likely won’t get very far.
Keeping the Financials Straight
One way for small side businesses to acquire an accurate financial picture of how the business is functioning from the start is by using a credit card designed especially for small businesses. By tracking spending from the start using the credit card and the monthly reporting statements, businesses looking to grow will have an accurate understanding of what is necessary for expansion, should the business remain successful. This will be especially important in the event additional financing is necessary. Lenders like banks and private investors will want a solid track record of profits and operating expenses for the business before they would consider loaning money or investing in a new business. Read the full Story...