Credit Card Debt Consolidation

The best way to relieve financial stress is to minimize credit card usage. But what if you already have existing high balances with an even higher interest rate? The answer to this, of course, is to eliminate your credit card accounts that have high interest rates. But then again, it is not a possibility considering the fact that you are hardly able to make the minimum payment on each of them.

With most people being trapped in this scenario, there are more and more consumers scampering to credit counsellors for assistance. And what most credit counsellors would advise is to do credit card debt consolidation. Which you can anyone can do on their own, thus eliminating the extra expense of paying professional fees to credit counselors.

The first step in doing credit card debt consolidation is calling your lenders and inquiring about any existing promotional balance transfer offer they may have available for you. Compare the terms and conditions. Consider the rate being offered, how long the rate is good for, the rate after the offer expires, and other fees associated with it.

Now, before you hastily do your credit card debt consolidation on the account that would have the best deal, ask for the possibility of having your credit line increased. This will allow you to transfer as much balance, thus paying less finance charges as possible. Always transfer higher interest balances from your other credit card accounts to the one that will give you the best deal.

One point to consider is existing accounts that you haven’t had any balance on or haven’t used for quite some time. Remember your emergency credit card? Your lender for this account will most likely more than willing to give you a good credit card debt consolidation offer to entice you into doing business with them again.

If you can’t find any good deal with your existing lenders, you can shop around for a new credit card account online. Most lenders are offering 0% introductory rate to get as much share of the consumer market. This is especially helpful if you have a good credit score to boost your application. You can leverage your credit history to ask for a more lenient terms and conditions.

Credit card debt consolidation used to have a negative connotation to it. It is usually done by those who are on the brink of bankruptcy. But considering the current economic condition, it is one of the wisest move one can do to save money from paying finance charges, especially now that change in terms are common among credit card companies.

Being a smart consumer is not an option that should be taken only on tough times. If you want to have financial freedom at all times, this is your only option. Financial institutions are always regarded as vultures who take advantage of their borrowers, but what people fail to realize is they have always had these balance transfer options to their consumers. It is just the consumers who failed to take advantage of it.

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