With high-interest rates, credit card debt is one of the most expensive types of debt you can have. Sometimes, however, no matter how meticulous you are about making timely payments, you may still find yourself in credit card debt. It starts off small. You miss one payment and think you’ll catch up with the next one. But the high interest on the outstanding amount and the missed fee penalty only add to your debt. This can make it even more difficult to catch up, especially if your budget is already stretched.

Refinancing is one way to manage credit debt. Here are three signs it may be right for you!

How Credit Card Refinance Works

With credit card refinance, you transfer the balance of your current credit cards to a new credit card. The most important factor to consider is that the new credit card must offer a zero-interest balance transfer option. It must also offer a high credit limit.

When you transfer your current credit card balances to your new zero-interest card, the balances won’t incur any interest. This instantly reduces your credit card debt as you only have to pay the outstanding minus any interest charges. The thing to remember with refinancing credit card debt is that the 0% grace period is temporary. To benefit from this move, you must pay off your debt before the grace period ends.

If you’ve accumulated credit card debt and these 3 signs apply to you, you should consider credit card debt refinance.

1. You’re Struggling To Catch Up On Your Credit Card Payments

As we said earlier, credit card debt is expensive. One missed payment can snowball into several months of unaffordable payments. The high-interest rates and recurring late fee penalties just keep adding to your mounting debt. If your credit card debt is already unaffordable, it’s not going to get any better with time. If anything, it’s only going to get worse.

Transferring your balance to a 0% interest credit card temporarily lowers your interest rate to zero. This should make it easier for you to pay off your debt.

2. Your Credit Score Is At Least 690

Credit card issuers will only approve your application if your credit is good. 690 is the minimum credit score requirement to qualify for most credit cards but not all. The higher your score, the easier it will be for you to qualify for a good credit card.

3. You Have A Solid Debt Repayment Plan

The 0% that credit card companies offer is only a temporary introductory offer. The zero-interest period is generally anywhere between 11 and 18 months. This could vary among issuers. After this grace period ends, interest will kick in and this interest is usually higher than average.

If you’re planning on refinancing credit card debt, you must have a solid plan to repay the debt before the zero-interest period ends. If you don’t, you’ll end up paying a higher interest rate on the outstanding debt. This will push you even further into debt, making future repayments even more difficult.