Is Credit Card Consolidation A Good Choice?

Do you find it difficult to juggle your monthly credit card bills with your personal or household expenses? If you do then, it’s about time that you take appropriate steps to address this concern. Don’t wait until your bills pile up or until your card issuers start calling and pestering you about your past due charges. Bear in mind that immediate action can help prevent you from having negative items in your credit report. Credit card consolidation can help by turning your many payments into one.

If you’re currently managing several credit cards then, we encourage you to do your best to settle your charges in full. Always remember that carrying over balance from one month to the next can inflict damage, not only to your credit history, but also to your personal finances. This is especially true if your credit cards carry steep interest rates, which could range from 15% to 19%.

Now, if you think you’re slowly sinking into debt, what can you do to dig yourself out of it, fast?

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 continue 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.

view 2009 resources for Debt Consolidation Companies

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

2 Comments
  1. I think that consolidation is 100 times better than a bankruptcy. Why should we go for bankruptcy, its always better to go towards Consolidation. And nowadays there are so many sites available who provides best consolidation services than why one choose bankruptcy.

  2. Debt consolidation is mostly bad because of the psychological effect it has on you; you will instantly feel better because you only have “one debt”, and you will revert to being the financial idiot you were that accumulated your debt. And the hole you are in will soon be even deeper!

    Skip it.

    Rank your debts, smallest to largest, ignoring the APR’s, and pay minimums on all but the smallest. Sell stuff, work overtime, eat boiled potatoes, deliver pizzas, and send every penny you can to that smallest debt until it is gone…. Then move on to the next…. etc.,etc.,etc….

    Soon you will find yourself thrifty and rich, not a bad place to be!

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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