Consolidate credit card debt

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Debt consolidation for credit cards is very useful when it comes to paying your interest for many credit cards you hold. Consolidate credit card debt.

It would be a terrible job to pay interest when multiple cards are kept. Therefore, this consolidation is a boon for all those who have multiple credit cards.  This has many other benefits to lower your interest or other features too.


This simply means consolidating debts on different cards in minimum so that you are benefited. This consolidation is usually as bank loans at low interest. This can also be done by transferring the balance to a new one. This is another technique to reduce your debts. You can easily turn all the debts that you have on several credit cards in, with the new minimal interest.

Annual percentage rate of charge (APR)

The first and thing to look for in a credit card consolidation is the APR. This is the key to your consolidation. The bank’s annual percentage rate must be of the utmost consideration in their efforts to consolidate the cards. As mentioned earlier, you can consolidate it through bank loans or balance transfer. Whatever method is followed, the APR would be the basis, which determines the consolidation.

If bank loans are used to consolidate credit cards, then it should be that the interest of the bank loan that’s been applied should be less than the annual percentage rate . Suppose if you plan to use the transfer mechanism, then you have to ensure that the rate that you’re about to get will be expected to be much lower than the credit card’s that you ‘re about to melt.

Issues with annual rate

There are other issues that need to be considered.

You may be offered an annual percentage rate of 0% for a period of 3-6 months. However, later that may have an unexpected, drastic increase. Consider the change in the APR, even after the specific period to make sure it will be less than or equal to the current. So we must consider all of these issues, then decide if you want to consolidate your credit cards.


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Debt consolidation for credit cards is very useful when it comes to paying your interest for the many credit cards you hold. It would be a terrible job to pay so much in interest whenever the list of cards you have is high. Therefore, consolidation is a must for all those who have multiple credit cards. There are many benefits to lower your interest.


Consolidate Credit Card

If you can’t qualify for a debt consolidation loan at a reasonable interest rate, you could try to consolidate all of your credit card balances onto one low interest rate card. Aggressively pay off this card by paying a set amount each month that you determine in advance. For example, the minimum payment on the card may be $25, but if you choose to pay $250 every month, the balance will be paid off in a much shorter amount of time.

Occasionally, credit card companies will offer very low promotional interest rates. You can use this as an opportunity to consolidate your debts. This may work for a while, but the reason why credit card companies offer these promotional rates is because they expect that most people won’t pay off their balances in a timely fashion. This in turn will end up getting you stuck at a higher interest rate when the promotional interest rate expires.

Many credit card companies also offer low interest rate credit cards. However, many times people who desperately want them don’t qualify because their credit score is not high enough or their debt is too high. If this is your situation, there are other options below that may work for you.

Advantages of Consolidating with Credit Cards

  1. Low interest cards are available along with low promotional interest rates.
  2. Having all your debt in one place can make it easier for you to keep track of what you owe and start paying it down.
  3. Flexible payments. You can pay much more than your minimum payment each month, but if an emergency arises you can temporarily fall back to the minimum payment.


Disadvantages of Consolidating with Credit Cards

  1. Many people who need a consolidation loan don’t qualify for low rate credit cards.
  2. Promotional interest rates will usually only last for a few months
  3. Once a promotional rate ends, normal interest rates are usually very high.
  4. Create a budget, spend less than you earn, and try to pay more than your minimum payment each month, or it might take you decades to pay off your debt using a credit card.

Source Attribution:
Credit Counseling Society

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