Credit Card Consolidation - Make your debt manageable
Remember the old joke? Can I pay my Visa with my MasterCard/ While it was meant to be ironic, these days balance transfer credit cards allow you to do exactly that. By transferring the balance due on one credit card to another with a lower APR, you can reduce your monthly payments and clear up your debts faster.
Credit card consolidation takes its basic premise from debt consolidation loans. The idea is to move credit card debt from high interest cards to balance transfer credit cards that offer lower interest. In an effort to get your business, many companies even offer balance transfer deals with 0% interest rates for up to six months. That means that if you pay off your transferred balance in those six months you pay no interest at all.
When to Consider a Balance Transfer Credit Card
If you owe money on more than one credit card, or if you have an outstanding balance that attracts a high APR, it's worth taking a look at a balance transfer credit card.
Perhaps you got your original card at a time when your credit score was lower, and only qualified you for a higher interest rate. Maybe you made a late payment and found yourself suddenly paying as much as 29% APR on your outstanding balance. Maybe you have smaller outstanding balances on several different cards and together they add up to a hefty monthly payment just to meet the minimums. No matter what the case, you may find that transferring your outstanding balance or balances to a 0% balance transfer credit card will allow you to make your payments actually count against the amount of your money you owe.
Compare Balance Transfer Credit Cards at moneyeverything.com
Because there are many different balance transfer credit cards, all with differing terms and conditions, it's important to compare the options before you apply for one. In order to make it worth your while to consolidate your debt by transferring your outstanding balance, the savings you gain by moving your balance must outweigh any negatives. Here are some things to look for if you decide to consolidate your borrowing using balance transfer credit cards.
- Compare balance transfer credit cards at moneyeverything.com to find one with the best interest rates.
You'll find many options that offer 0% interest on balance transfers from other credit cards. Even if you don't qualify for one of those, there are balance transfer credit cards that offer APRs of less than 5%.
- Compare typical rates for transfers on balance transfer credit cards at moneyeverything.com.
If you're not certain that you'll be able to pay off your balance within the introductory period, then the typical APR for transfers becomes more important. Choose a balance transfer credit card that has a low typical APR for balance transfers.
- Watch out for the fees companies charge.
If you don't take the time to compare balance the option at www.moneyeverything.com, you may find yourself hit with balance transfer fees from both ends. Make sure you take the fees into account when deciding whether a balance transfer credit card will save you money.