Credit cards can play a major role in getting consumers into debt. They offer people a way to spend beyond their means (although they certainly aren’t completely to blame). But did you know credit cards can also play a role in helping you get out of debt? That’s especially true if credit card debt is the kind of debt you’re dealing with.

It’s all thanks to balance transfers. If you feel you have enough discipline to use credit cards to tackle your credit card debt, you might appreciate these two debt-busting balance transfer benefits.

Balance Transfers as Debt Reduction Tools
Balance transfer credit cards like the Citibank Clear Platinum credit card offer the following two benefits that can help you tackle existing credit card debt accumulated on other cards.

1. Lower Rates — Balance transfer credit cards, by their very nature, offer lower interest on transferred balances than you’re probably paying on a current credit card. Some, like the Virgin Flyer credit card, even offer 0% balance transfer rates for a limited time. That gives you time to pay down your debt without accumulating as much, if any, further interest.

   Normally for every payment you make, your balance will go back up a little as new interest charges are added monthly. That can slow down debt repayment and be downright discouraging. In that sense a balance transfer credit card can positively impact your debt reduction plan by letting more of your money go towards getting you out of debt.

2. Consolidation — Another benefit of balance transfer credit cards that can play a role in helping you get out of debt is consolidation. By consolidating smaller balances onto a single balance transfer card, you can maximise those lower rates and streamline your payments.

   If you feel like you have too many credit cards and that’s a part of the problem with your current debt situation, this can help. Not only will it cut down on the number of cards you can use for new purchases now, but you’ll have fewer cards providing temptation when the balance is paid off (assuming you close accounts after transferring your balances away).

It’s important that you don’t think of credit cards as the villain in your less than perfect financial situation. In the end it comes down to the decisions you make. And if you decide that credit cards can be a useful tool rather than a licence to spend, they just might help you get out of the mess you currently find yourself in with credit card debt.