Credit Card Debt Consolidation
Posted September 7th, 2009
and last modified December 2nd, 2009Credit card consolidation offers consumers who have financial problems to consolidate credit card debt by moving all of their existing cards onto a new card, called a balance transfer card.
If you currently struggle with several credit cards and find them to be a nuisance rather than a helpful tool, then perhaps it’s time for you to consider credit card debt consolidation.
Here are three tips below will show you why and how you need to pay attention:
3 credit card consolidation benefits:
1. Convenience accounting: The first benefit is very strong. By consolidating your credit cards into one new balance transfer card you get to enjoy the convenience of having to deal with the one single account and statement rather than the many you currently struggle with.
You won’t need to remember several payment dates which makes the whole process of managing your credit card very convenient. You will also less likely forget to pay your consolidated credit card on time. This in turn will allow you to repay your debt much faster.
2. Benefit from fabulously low interest rate periods: How low can they be? How does 0% sound? Many credit card lenders offer a six to 12 months interest free introductory period. Some even go one step further with lifetime offers of zero percent interest.
By paying less interest on your credit card consolidation attack you save more money and reduce your debt much faster. Every penny saved is a penny paid off faster if you use a balance transfer card correctly. Here is where the money is:
- Pay special attention to how long the honeymoon period lasts. If the six months are up, interest rates will revert to much higher rates and those can ruin your whole effort of trying to consolidate credit card debt.
- Pay attention to balance transfer rates as these are usually around 3% of your debt. If your debt is very high, you might want to consider a credit card debt consolidation loan instead.
- It is advisable to read the card’s terms and conditions before you proceed with any debt consolidation strategies.
3. Repay your debt much faster: By applying the above tips and strategies you can theoretically pay off your debt within the six months of your 0% introduction period. It is advisable to do so. Before you grab the first card, visit our credit card debt repayment calculator and see how long it would take to repay your debt on the card you consider switching to.
If you find six months are not enough, choose a balance transfer card that gives you a 12 months interest free offer. If that is still not enough, choose one for life.
The following credit cards can offer you a six months interest free balance transfer period:
Related posts:
- Credit Card Debt Consolidation Loans
- Personal Loans vs. Credit Cards In Debt Consolidation
- ANZ Debt Consolidation Using A Balance Transfer Or Personal Loan
- Credit Card Consolidation: Tips For Consolidating Credit Card Debt
- Fox Symes Debt Consolidation – foxsymes.com.au
- Debt Consolidation Advice – Information and Services
- New Year Debt Consolidation Advice
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Editor's Choice: Our Top Credit Cards
St George Vertigo
Low Interest
Low 2.99% for 6 months (reverts to 11.99%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.
Coles Group Source MasterCard
Bankwest Zero Platinum MasterCard
No Annual Fee
Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 9 months on balance transfers