Credit Card Consolidation: Compare Credit Cards with Low Interest Rates

Credit Card Consolidation: Compare Credit Cards with Low Interest Rates

Posted in Articles by Jessica

Credit Card Consolidation: Compare Credit Cards with Low Interest Rates:


These days, many people have been seeking help to manage and consolidate their credit card debts. In fact, the issue of credit card debt is the most common financial problem of Americans at present. As a rough estimate, the average credit card balance per household is about $8,000 and usually increases during the holidays. However, there are a number of solutions that you can use to lower your debts. By doing a little homework you’ll be able to find some easy ways to deal with the credit card debt issue quickly.

Credit card debt consolidation is the best way to manage your credit card debt issue. Many of us often question whether credit card consolidation is successful or not. Although it may not be the sole solution to solve your credit card debt issue, it can be the best possible way to manage it. However, by opting for this option you can easily find an efficient way to pay off your debts. It is advisable for you to first understand and learn more about the pros and cons of the credit card consolidation process. In this way, you will have a brief idea on how the process actually works. Also, this will help you in getting the best rates for a refinance scheme if you are looking for any. As per your present financial situation, you can always opt for the credit card debt consolidation. 

If you are planning for consolidating your credit card debt, then you may take help from some professional financial consultants. In case you have some high debt balances left on your credit card with higher interest rates, then you should consider consolidating your credit card debt right away. This is the best and right decision for you to manage your debt.

One of the most commonly used methods for consolidating credit card debt is to transfer the existing balance to a new credit card. In effect, the total debt balance from one credit card is transferred to another card. This can happen when you opt for switching to any credit card with low interest rates so you can transfer the existing balance to a whole new credit card account or just transfer any other existing balances onto another existing open account. Either way, you will be able to manage your debt as you shouldn’t be paying the higher interest rates because you have the option to pay a lower interest rate on one card.

Before transferring the balance to another credit card, you should do some research to learn more about the offers on balance transfer just as you would compare credit cards before signing for any. You need to look at it from both perspectives meaning you need to carefully see whether the balance transfer offers cater to your needs or not. Also, don’t forget to check the terms of any reduced interest rates. A number of credit cards offer an introductory rate, so the customers will pay a minimal interest in the beginning. However, as the introductory period gets over, the interest rate will automatically increase. 

Furthermore, there are a number of other checks that you need to do while opting for those credit cards with low interest rates so that you can transfer your credit card debt balance. First, check with the card issuer to see if they charge a fee. Sometimes, you will come across either a flat fee per transfer or a percentage fee while transferring your balance. Also, ensure that there are no other general fees associated with the new card. Again, you need to also find out if there is a terminating fee if you close your existing credit card account. While looking for a low interest credit card, you need to also ensure that you get a better interest rate than the one for your existing credit card account. Basically, you must compare credit cards, their interest rates, the duration of the introductory offers, the expiration and the termination criteria, and the late payment charges.

By choosing the debt consolidation, you may be able to reduce the amount of your monthly payment. Also, you may be able to choose a long repayment schedule by making each monthly payment amount smaller. However, in this case, your interest rate will automatically become high. Another benefit of debt consolidation is that it could reduce the total amount of interest rate. As you combine all your debts, it will be just one interest that you need to deal with. Of course, this could certainly help you paying the minimal interest rate.

Once you switch to a new credit card and decide to transfer your debt balance to it, consider sticking with that new service at least for a year. Because applying for a new credit card affects your credit history, you need to at least wait for some time before switching to another service provider. Also, don’t forget to cancel your old credit card. This is because most of the lenders take the old and unused credit cards as a potential outstanding debt. Another important thing that you need to do is inquire about the teaser rates and whether it applies to the new purchase or the transferred balances. Always consider double checking everything before signing up for a new credit card. Before switching, you may also want to call your old credit card company to verify whether the balance transfer is complete or not.


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