Portland Bankruptcy: Transfers and Bankruptcy

One way people in Oregon get into trouble when trying to restructure their debt is to try to 'balance transfer' their way out of their credit card debt.  They will move money from one card with a high interest rate to another one with a lower interest rate.  All major financial institutions in Oregon; including those in Portland, Beaverton, Tigard and Salem have some sort of balance transfer program.  There are some problems to watch out for.

First, that lower interest rate that you were promised will usually be temporary.  Maybe its for six months or 12 months but then watch out; it will likely go through the roof when your temporary term is up.

Second, you must comply with the terms of the credit card transfer exactly.  Oregon financial companies as well as the national ones term their contracts so that any error on your part, albeit a missed payment or late payment will cause you to loose your lower interest rate and have the new rate push past 29%.  This might make the transfer pointless and your interest rate would be higher than before.

Another trap for Portland area borrowers is the 'new purchase' trap.  That's when the interest rate on your transferred balance is low but any new purchase on the card is at a new 'higher' rate.  And the trick is that any payments you make on the card go to the lower interest rate first so the new purchase balance grows quickly.  There are some new laws passed by Congress this year that make that harder to do; but its still an issue for Oregon debt borrowers.

Next you need to watch out for balance transfer fee's.  Typically Oregon banks and national ones too will charge you from 2-4 % of the transferring balance to move the money.  Sometimes they cap the fee and others they don't. If you are not careful you might find that the interest payment you save does not outweigh the cost of the transfer.  Staying put might save you some money and free up some cash for a nice night out in Portland.

As you can tell a balance transfer is not as great as it might appear.  Sometimes it can put you in a worse position as opposed to doing nothing at all. If you find yourself in debt problems and are seeking a solution transferring debt around isn't the answer. You might consider talking to a Oregon bankruptcy lawyer and having them lay out your options.  You can find one in Portland, Tigard, Beaverton or just about any city in our State.

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