What should you do if you receive a balance transfer offer in the mail? All you have to do is fill out the little checks or call a toll-free number to activate a transfer offer. It’s an easy process that could help you reduce credit card debt…or can it. There are some pros and cons for using balance transfer offers for credit card debt.

Debt Reduction Takes Time

Even if you choose to use a balance transfer offer you still need to come up with a debt reduction plan. A transfer won’t erase your credit card debt. Only you can do that by coming up with the cash to pay down your balance month by month. This takes time so be patient.

Debt Consolidation

A balance transfer can help you consolidate debt and lower the amount of interest you pay. Howeve

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If you had an outstanding credit card balance of $5,000 and your issuer offered you a $200 bonus to pay off your debt in the next 6 months, would you take it?

Some credit card issuers are hoping that’s exactly what customers will do. Issuers are considering rewarding cardholders, rather than penalizing them, with these cash incentives to encourage customers to unload debt, which also decreases risk of defaults and record-high delinquencies for issuers. Sounds like good news for cardholders and issuers alike.

MSN Money broke the story, pointing out that issuers are becoming a little more cooperative with cardholders hampered with debt because potential defaults and delinquencies are costing issuers millions. W

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