Credit Card Debt Consolidation to Save More Money

By: Jon Norwood

Credit card debt consolidation can save a consumer a great deal of money if handled with care. If you are attempting to improve your credit, or reduce interest payments across several cards, then taking advantage debt consolidation may be a perfect solution. This of course is no miracle cure, and it certainly doesn't pay off your bills. What it does is make being in debt cost less, thus reducing the time it takes to get out.

The primary reason to consolidate debt is to get a better interest rate. If you can't reduce the interest rate of your debt by consolidating, then don't do it as it will not serve to reduce your interest charges. The simplest method is to take the highest APR credit cards you have a balance on and transfer them to a low interest credit card. The method can use any type of loan, and a consumer might be better served to get a short term bank load to pay off all credit card debt, and then make payments to the bank at a lower interest rate. Either way the focus is to reduce finance charges.

Be mindful of any fees associated with balance transfers. Some credit cards will offer you what appears to be an incredible deal on transferring balances, but in the find print you find fees that drain a great deal of value from the offer. Credit cards also have a separate APR for balance transfers than new purchases. You may think you know what your APR is, but check again. On your monthly statement your interest rates should be available. Check for the one pertaining to balance transfers to make sure you are actually lowering your payments.

There are many firms that specialize in helping consumers consolidate debt. Banks are also available with a great deal of useful information. If you already have a relationship with a banking interest it might be wise to give them a call and see what offers they have that might help. Take your time and research your options because you don't want to create more problems down the road. Keep an eye on all fees and "intro" offers and make they are right in the long run.

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