New Horizon Business Services Inc.

Many consumers own more than one credit card. Add to this, many people carry balances on not just one card, but on two or all their credit cards even. Carrying over balances from one billing cycle to the next is a very risky habit. With the high interest rates on most cards (ranging from 15% to 19%), anyone can easily get stuck in debt in just a few months. If this is a familiar situation, what can you do?

Consolidating Credit Card Debt Options

Consolidating or combining credit card debts is a viable first step towards debt recovery. However, it’s not just about transferring your balances to a new credit card. First, finding the right balance transfer credit card to use for consolidation is crucial. Second, being consistent with your payments is the only way you can get free from multiple credit card debt. Let’s consider these two important aspects of credit card debt consolidation.

Finding the Right Balance Transfer Credit Card

There are many credit cards in the market offering low interest or zero interest rate for balance transfers. But making the right choice can be a challenge. The trick is to find a balance transfer card that offers a low interest rate or zero interest rate that lasts. You'll want to make sure that you can pay off all the balances you've transferred while enjoying the best interest rate offer.

Introductory offers may last for 3 to 6 months while some credit cards extend up to 12 months or more. If you can find a balance transfer credit card that offers at least 6 to 12 months of zero interest, then all the better. Thus, you can concentrate on paying off the original amount you owe without the additional interest cost.

Aside from the interest rate, check if the balance transfer credit card imposes other fees. For instance, is there a balance transfer fee? How much would you need to pay each time you transfer a balance from another card? What about the interest rate that applies to purchases? Take note that most balance transfer cards charge a different rate of interest for new purchases. Furthermore, you may be required to use the card on new purchases to keep your account active.

Keeping Up With Your Payments

After getting the right balance transfer credit card, the next step towards recovery is up to you. Remember, it's important to completely pay off all the balances you've transferred within the low rate or zero-interest rate period. Don't wait until the introductory period expires.

It is wise to avoid incurring new charges or continuously using your credit cards for new purchases. This way, you can really work on your debt repayment without worrying about new debts. If you must use your balance transfer credit card for new purchases, limit your expense to only a small amount. Be sure to pay off the new purchase immediately before you incur the interest charge. Last but not the least, submit your payments on time to avoid possible penalties.

keep me in mind

view 2009 resources for Debt Consolidation Companies