Is Consolidating Credit Card Debt A Good Option
Consolidating credit-card debt
Is consolidating debt a good pick?
Well, the answer will more oftentimes be yes than no. Consolidating credit-card debt is oftentimes regarded as the 1st step towards credit-card debt elimination.
In any case, even before you move to take 1st step towards consolidating debt, you must understand that consolidating credit-card debt (or balance transfer) is an action that you're taking to finish off paying your card bills. Consolidating debt isn't a means of deferring the problem for later.
Consolidating credit-card debt is indeed a good alternativein 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 debt have an initial low APR period during which the APR is typically 0% (or some low figure).
In reality, this is one of the main things which make consolidating credit-card debt a very attractive choice. Besides this low APR, the offers for consolidating debt also include things like no rate of interest on the purchases made during 1st 5 months (or a few other initial period) of balance transfer.
This is an additional thing that lowers the speed at which your credit-card debt gallops. So these are the 2 most indispensable do goods 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're consolidating credit-card debt to.
These reward points can be redeemed for other attractive goods/rebates/rewards etc. Oftentimes, the new credit-card (e.g. the one you're consolidating credit-card debt to) could be a credit card that caters more to your existent spending needs both in terms of the credit limits and the way you spend your money.
For instance, the new credit-card could be a co-branded one offered by an air carrier that you have started traveling with very frequently in the recent times and consolidating credit-card debt on such a card may open up much more benefits as equated to your existent credit-card which was based on your needs at the time of you applying for your existent credit card.
The credit-card you're consolidating credit-card debt to might open up discount offers to you.