How to Consolidate Credit Card Debt
Nothing is worse than feeling like you have accumulated more credit card debt than you can handle. And, realistically, almost any amount can quickly
become too much to handle, thanks to the high interest rates most revolving debt carries. For this reason, many people decide to consolidate credit
card debt.
Why Consolidate Your Credit Card Debt?
The only reason to consolidate your credit card debt is because you want to get out from under it – and, realistically, who doesn’t? However, if you do
not keep this goal in mind, you can easily make a decision that will cost you more in the long run, or even jeopardize your credit score. So remember,
when consolidating your credit card debt, make sure every move you make will result in less interest and fees and/or a shorter pay-down period.
Consolidate Credit Card Debt on Another Card
Perhaps the most common way to consolidate credit card debt is to move all your balances to the same card. If you’re like most people, you probably
get credit card offers in the mail on a regular basis. In this method of consolidating credit card debt, the idea is to find a credit card offer with a better
deal than you are currently getting, and move your balances so that you can take advantage of the lower rates and fees.
What to Look Out For
Consolidating your credit card debt on another card is only a good idea if the new card really is a better deal than you already have. If you aren’t
careful, you could end up costing yourself more money or even destroying your credit rating. To make sure you don’t end up in a worse situation than
you were before, you will need to:
• Find out how long the introductory rate will last. Most new card offers flash super-low rates at you in big numbers, hoping you won’t look any further.
However, usually these “teaser” rates only last a short period of time. Also, if you go over your credit limit or make a late payment you may lose your
initial deal. Make sure you know how long the introdu