Consolidating Credit Card Debt

One of the greatest regrets that people has today is having multiple credit card. No one has anticipated the current economic crisis, and people ended up being stuck with the change in terms that credit card companies have implemented to their card holders. APRs have gone up twice (in some cases more than that) on existing debts that no one has thought of paying off during the better days.

If you have multiple credit card debts and barely making minimum monthly payments on all of them, then you may be worried about a future financial ruin. Considering that the huge interest being assessed on the outstanding balance is just enough to cover the monthly interest, you are likely to end up paying it down within the next few years.

The answer to this dilemma is consolidating credit card debt. The main idea in consolidating credit card debts is to get rid of your credit card loans with the highest interests. You transfer them all together to the account that could offer the lowest annual percentage rate.

So, instead of wasting your hard-earned money on paying finance charges, you get to pay a huge chunk of the principal, reducing your debt to income ratio in no time.
Consolidating credit card debt is transferring higher interest balances into one credit card account.

This is not just a financially sound decision, it is also easier to manage payments if you are thinking of less due dates to meet. It relieves you the stress of having to remember multiple due dates and having to budget your household expenses around these dues.

Debt consolidation is the answer that you have been looking for if you are near to defaulting on your credit card balances. To avoid negative impact on your credit history, might as well transfer all your higher APR balances into one big credit card account with lower interest.

It will be a lot easier to manage one big balance than two or more lower balances. Sure your minimum payment on these small credit card accounts are just about $15 to $20, but if you were to think about it, about 5 of these type of payments is $100 and all of this $100 is just to cover the finance charges on your debts.

When consolidating credit card debts, you get to take advantage of the promotional offers that banks use to entice customers to transfer. There is a lot of 0% APRs that you can take advantage of. Just imagine the savings you can have by not paying any interest on your existing loans for six to twelve months.

If you’re thinking of the long history you have with your existing credit card companies, just think about how it wouldn’t matter to them if you were to miss even just one payment. Consolidating credit card debt with the company that can have the best offer is looking after your family’s financial future. In the end, the best credit history is not having even a single missed payment on your record.

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