Is consolidating credit card debt a good option?
Well, the answer will more often be yes than no. Consolidating credit card debt is often
regarded as the first step towards credit card debt elimination. However, even before you move to take first step
towards consolidating credit card debt, you must understand that consolidating credit card debt (or balance
transfer) is an action that you are taking to eliminate credit card debt. Consolidating credit card debt is not a
means of deferring the problem for later.
Consolidating credit card debt is indeed a good option in more than one sense. Not only do you get relief from
the rapid increase in your credit card debt, but also get other benefits too. Offers for consolidating credit card
debt are in abundance and are very attractive indeed. Almost all the offers for consolidating credit card debt have
an initial low APR period during which the APR is generally 0% (or some low figure). In fact, this is one of the
main things which make consolidating credit card debt a very attractive option. Besides this low APR, the offers
for consolidating credit card debt also include things like no interest rate on the purchases made during first 5
months (or some other initial period) of balance transfer.
This is another thing that lowers the speed at which your credit card debt gallops. So these are the two most
important benefits that credit card suppliers deploy to attract people into consolidating credit card debt with
them. Then there are other benefits which include things like additional reward points on the member’s reward
program of the credit card you are consolidating credit card debt to. These reward points can be redeemed for other
attractive goods/rebates/rewards etc. Sometimes, the new credit card (i.e. the one you are consolidating credit
card debt to) might be a credit card that caters more to your current spending needs both in terms of the credit
limits and the way you spend your money. For example, the new credit card might be a co-branded one offered by an
airline that you have started travelling with very frequently in the recent times and consolidating credit card debt on such a card may open up much more
benefits as compared to your current credit card which was based on your needs at the time of you applying for your
current credit card. The credit card you are consolidating credit card debt to might open up
discount offers to you.
Credit in Minutes Tip #1
Stay on top of your credit report. Most credit reports contain errors. Make sure you check your credit report
every year (you get one free credit report every twelve months) and if there are errors make sure to challenge them
with the reporting credit agency. Credit agencies are required to investigate each and every challenge that gets
Credit in Minutes Tip
Just because you qualify for all of those credit cards does not mean you should get them. A person with too many
credit cards looks sketchy in the eyes of a potential creditor. Think of it this way: if a person is financially
stable does he or she need ten different credit cards? Wouldn’t just one or two suffice?
Credit in Minutes Tip
The best way to raise your credit score is to make all of your payments on time. It sounds too simple to be
true, but that’s all there really is to it. Staying out of debt and/or making all of your debt payments on time
will keep your score up where it should be.