Credit cards can be both a blessing and a curse. In today’s generation, a credit card is more than necessary in case of an emergency as it allows you to make a payment on credit in the case that you do not have cash. However, a credit card is also considered a curse as it gives you the freedom to do whatever you want with the credit limit given to you – from purchasing to transferring money – everything is covered.
This is where the problem lies, though, as using a credit card without any form of restriction is bound to get you into debt. In addition to that, most people make the mistake of not reading the fine print or clarifying with their respective banks as to what the interest rates are. Then, they end up spending a lot of money on their card and wonder why their bill is much higher than what they have spent on.
Soon enough, you will find yourself in debt – and you may not know how to get out of it. At this point, you are willing to do anything and you realize that taking the credit card debt consolidation route may be of great help to you. Though it may be attractive at first glance, it may not be for everybody. There are a lot of things you will need to take into consideration before choosing to consolidate your credit card debts such as your current credit standing, how much debt you have, how much you can pay every month, etc.
If you choose to get another credit card that can help in consolidating all previous credit card debts, then you will also need to know the introductory rates and how long these introductory rates will last for. If the introductory rate for balance transfer only lasts up to six (6) months, then you will need to make sure that you can pay off the entirety of your debt within that given period. If you do not, you may find yourself in an even larger pool of debt.
Also, while a new credit card may have a zero percent (0%) balance transfer, there is still such a thing called as a balance transfer fee, which may typically range from 2% to 5% of the total balance transferred. However, even if you will need to pay for the balance transfer fee, it is still worth it as you are saving on paying interest in the long term.
If you really do not know how to manage your debt, then you can hire a credit counselor. With the many available ones out there, though, you will need to choose a right one that is truly in it for the right reasons. First and foremost, make sure to ask them about their fees before committing to them as sometimes they charge you a good amount without even doing much for you. In addition to that, look for a credit counselor that is willing to send you free information on their services, licensed to practice in your state, one that offers a range of services, and an organization with certified counselors whom you know you can trust.
So there you have it – everything that you should know about credit card debt consolidation. With all that has been mentioned, you will need to decide whether or not this is the best route for you – while it has worked for other people, the case may be different with you. For this reason, evaluate your other options and do the math before committing to credit card debt consolidation – at the end of the day, the best option is one that allows you to be flexible with payments and brings about great savings in the end.
Credit card debt consolidation helps make debt more manageable. See how one should do it at consolidation.creditcard. If you’re planning to pay a card with high interest rate, here are some extra tips for you: https://investor.gov/introduction-investing/basics/save-invest/pay-credit-cards-or-other-high-interest-debt.
At consolidation.creditcard, we cover everything about credit card consolidation. All bases are covered so you can make the best choices and be debt-free soon!