So what is "Credit card debt consolidation"?
Credit card debt is a nightmare of an issue and regrettably there plenty of individuals who face this today (and if others don't pay heed, they might get trapped in to credit card debt. Credit card debt consolidation is usually regarded as the most important step in credit card debt reduction and elimination.
As you would have noticed, plenty of credit card suppliers and banks keep coming out with beautiful offers for Credit card debt consolidation (or balance transfers). There is no dearth of 0% APR offers for credit card debt consolidation. However, credit card debt consolidation is a serious exercise and you must exercise caution so that you don't get in to deeper trouble. When going for credit card debt consolidation, you must properly analyze the offers from various banks and credit card suppliers. Check the time period for which 0% APR is being offered and also the APR that would be applicable after the lapse of that period. Usually, 0%APR is valid for a 6-12 month period only. So, in case you are confident of paying back a substantial amount of debt in that period, this sort of credit card debt consolidation will work for you even if the APR (post 0% period) is a bit higher. However, if that is not the case, the long term APR is going to be the most important thing for you. If the long term APR is over the APR for your current credit card, this sort of Credit card debt consolidation will be futile for you. Also, check processing charges etc before you actually go for balance transfer or credit card debt consolidation with another supplier/bank. Another nice idea is to check along with your current credit card supplier and see in the event that they can offer a lower APR to you in order to help you in clearing off your debt (you would be surprised that they do oblige sometimes and hence eliminate the necessity for credit card debt consolidation).
Credit card debt consolidation is the process/strategy to consolidate debt from multiple credit cards in to lesser number of credit cards (ideally or credit cards). Credit card debt consolidation is sometimes also referred as a balance transfer where you transfer your balance on credit card to another credit card. Usually, the balance transfer (or credit card debt consolidation) is done from credit cards with higher APR to credit cards with lower APR. Credit card debt consolidation may even be achieved by going for a bank loan (at a lower rate of interest) and using that towards paying the debt on the higher APR credit cards. This loan is then paid-back to the bank in the type of every month installments.
It's important that, with credit card debt consolidation, you also inculcate nice spending habits; otherwise credit card debt consolidation would be of no use to you.
Credit card debt is a nightmare of an issue and regrettably there plenty of individuals who face this today (and if others don't pay heed, they might get trapped in to credit card debt. Credit card debt consolidation is usually regarded as the most important step in credit card debt reduction and elimination.
As you would have noticed, plenty of credit card suppliers and banks keep coming out with beautiful offers for Credit card debt consolidation (or balance transfers). There is no dearth of 0% APR offers for credit card debt consolidation. However, credit card debt consolidation is a serious exercise and you must exercise caution so that you don't get in to deeper trouble. When going for credit card debt consolidation, you must properly analyze the offers from various banks and credit card suppliers. Check the time period for which 0% APR is being offered and also the APR that would be applicable after the lapse of that period. Usually, 0%APR is valid for a 6-12 month period only. So, in case you are confident of paying back a substantial amount of debt in that period, this sort of credit card debt consolidation will work for you even if the APR (post 0% period) is a bit higher. However, if that is not the case, the long term APR is going to be the most important thing for you. If the long term APR is over the APR for your current credit card, this sort of Credit card debt consolidation will be futile for you. Also, check processing charges etc before you actually go for balance transfer or credit card debt consolidation with another supplier/bank. Another nice idea is to check along with your current credit card supplier and see in the event that they can offer a lower APR to you in order to help you in clearing off your debt (you would be surprised that they do oblige sometimes and hence eliminate the necessity for credit card debt consolidation).
Credit card debt consolidation is the process/strategy to consolidate debt from multiple credit cards in to lesser number of credit cards (ideally or credit cards). Credit card debt consolidation is sometimes also referred as a balance transfer where you transfer your balance on credit card to another credit card. Usually, the balance transfer (or credit card debt consolidation) is done from credit cards with higher APR to credit cards with lower APR. Credit card debt consolidation may even be achieved by going for a bank loan (at a lower rate of interest) and using that towards paying the debt on the higher APR credit cards. This loan is then paid-back to the bank in the type of every month installments.
It's important that, with credit card debt consolidation, you also inculcate nice spending habits; otherwise credit card debt consolidation would be of no use to you.
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