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Home | Finance | Debt Consolidation Anyone who has read any newspaper articles on credit card debt would already know what credit card debt consolidation is. However, just for the benefit of others, credit card debt consolidation, in simple terms, is the process of consolidating debt which you hold on various high APR credit cards onto just one low APR credit card. Again, you must use your card correctly, but if you do, and you get a good rate, then this can be beneficial for you in your effort to get rid of your credit card debt for good. Here are some things to look for in getting the best deal. Initial APR: As mentioned above, lower APR is the biggest benefit from credit card debt consolidation. Since consolidation is used by credit card suppliers as a tool to attract consumers, they generally offer a 0% APR for a initial period of 6-9 months of you signing up with their credit card. Standard APR: If you are going to take more than the initial 6 to 9 months to pay off your credit card debt, then you need to look carefully at this rate. Clearly the credit card company hopes you will take a long time to pay. That is where they make their money, in addition to you spending more with your card, which I hope you don't do. 0% on purchases: This is another common benefit from credit card debt consolidation. The 0% interest (or some lower percentage) on purchases is offered as an incentive for credit card debt consolidation. This credit card debt consolidation benefit is again applicable only for a short initial period. Easy Management: Having one bill and one balance will help you keep track of your debt payoff progress. Other Benefits: These are not as important, but you might get rebates, discounts or reward points depending on the type of card you get. Don't let this be crucial, but just an additional plus if you get it. You might even ask for something like this. Sometimes the phone rep holds things back and adds them if that will close the deal. So what do you do when you get your debts consolidated and your new card arrives in the mail? Hopefully you have cut up your other cards that now have zero balances. Consider doing that with this one too. Or at least put it where it takes an effort to get it. And that means not in your wallet. Use the consolidation as a tool to get out of debt and you will have made a good choice. Don't use it to dig yourself deeper into credit card debt. Article Source: http://www.articlewheel.com
Author Paul McDermott shares his experience with credit card debt consolidation and other credit and debt issues at Credit Card Debt. Learn about his mistakes so you can avoid them.
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