Credit Card Consolidation – Consolidate your cards with a balance transfer

Using a balance transfer for Credit Card Consolidation is a valid way to reduce your credit card debt and interest repayments

Credit card consolidation is key to clearing up excessive credit card debt. By doing a credit card balance transfer you can avoid paying through the nose for years to come and get better rates to manage your existing debt.

The average individual debt in Australia has risen to a massive $50,000. With so many more people than ever before struggling financially, debt consolidation is becoming more and more popular.

You have quite a few options when it comes to debt consolidation. Some may consider a personal loan, whilst other will look at credit card consolidation. Once you understand your options, you will be able to make an informed choice about which will suit you the best.

GE Money Debt Consolidation

Debt consolidation has become increasingly more important in Australia and using GE Money Debt Consolidation is one of the simplest ways to consolidate all your debts into one simple weekly, fortnightly or monthly payment. The best thing about GE Money Debt Consolidation is that the interest rate is fixed for the life of the loan and you have the flexibility to set your own repayment amounts based on your own budget. Stop juggling multiple debts today with GE Money Debt Consolidation.

Features:

• Consolidate your credit cards, store cards, bills and other loans into just one easy to manage loan.
• Set a loan term that suits your budget and you could reduce your monthly outgoings.
• The repayment amount is fixed so it is easier to budget.
• Choose your own repayment frequency – weekly, fortnightly or monthly
• Fixed interest rate for the life of the loan.
• Make easy repayments using Direct Debit.
• No maximum loan amount (*subject to approval)
• Get approved within 24 hours of your application

Find out more about this offer

Let’s have a look at some of your credit card debt consolidation options.

Debt consolidation loans

Debt consolidation loans allow you to roll all of your debts, for example, credit cards and student loans, into one monthly payment.

Most the time these loans are paid over a fixed period of time, and whilst some will offer you a good fixed rate of interest, others will have a variable rate which may go up or down.

The best bet is to try and pay as much as possible each month, so you can reduce the amount of time you have loan for.

Home equity loans

If you are in the fortunate position of having some equity in your home, then you may be able to borrow some of that back in the form of a home equity loan. The equity in your home is simply the amount you have already paid back on your home loan. You may find that interest rates on these kind of loans are quite low in comparison to credit card transfers, or debt consolidation loans. You must however think about whether you are prepared to reduce the amount of equity you hold in your home by doing this.

Credit card consolidation

With credit card consolidation, what you are doing is putting the balance of all your other debts onto the credit card, and taking advantage of the special low introductory rates that are offered.

You will find most lenders offer balance transfer rates from anywhere between 6-12 months. The only catch with this kind of debt consolidation is that if you fail to pay back the full debt before the end of the introductory period, you run the risk of racking up a bigger debt because of the higher interest rate, and ending up back where you started.

With any of the forms of consolidation discussed, if your budget will allow, try and overpay your bill as much as possible each month. This will reduce the amount of interest you have to pay back overall, and will reduce the length of time you are in debt.

Five reasons why credit card consolidation is a good idea:

1. The single most important reason to make the move is because of the balance transfer. Doing a balance transfer will save you thousands of dollars if you currently struggle with debt on your card. The sooner you choose to move your debt onto a lower interest, or interest-free card, the more money (debt) you’ll save in the process. Check out the cheapest balance transfer cards for long-term debt reduction.
2. Reduced interest rate: When you do a balance transfer as stated above, your interest rate is automatically reduced as this is the nature of balance transfer cards.
3. Remove annual fees: Moving to a no annual fee card is also a move that can be considered when dealing with credit card consolidation issues. But, your should carefully toss up between a balance transfer card and choosing a fee-free card because you can actually save more money with a card like this even though you are still paying yearly fees.
4. Your fourth option is to apply for a credit card consolidation loan. Just be mindful of the fact that a loan will still be amortised, meaning that your loan repayments will be split between the interest and your primary debt.
5. Increase your credit rating. If you can manage to pay your debt on time then your credit rating will be positively affected. However you obviously can’t, otherwise you wouldn’t consider doing a credit card consolidation. By understanding your options you can make sound financial decisions for the future.

Check out today's featured offers:

Westpac Low Rate	Citibank Clear Platinum	Qantas AMEX Discovery	ANZ Platinum
0% p.a. for 6 months on purchases & balance transfers	2.9% p.a. for 12 months on balance transfers	$0 annual fee Up to 10,000 Bonus QFF Points	0% p.a. for 6 months on purchases & balance transfers

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%