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Consolidate credit card debt

Individuals who are in debt (credit card debt) usually get to hear this suggestions Consolidate credit card debt. So, what does that Consolidate credit card debt mean? Properly, fairly simply, Consolidate credit card debt indicates consolidating the debt on various credit cards into one particular (or two) credit card. This consolidation can be done either by means of a low interest bank loan or by transferring balance to a new credit card (i.e. transferring the amount you owe, on 1 or far more credit card, to a new credit card(s)).

So what should you do when you are searching to consolidate credit cards? Properly, the key thing to appear for is the APR or the annual percentage rate. Whatever strategy you adopt to consolidate credit cards, APR will usually be the key in fact, you could say that it is the sole criteria to appear for. So, if you use a bank loan to consolidate credit card debt, the interest rate on the bank loan ought to be lower than the APR of the credit cards whose debt you are consolidating. Similarly, if you are moving to yet another credit card, you ought to make confident that the APR of the new credit card is lesser than the credit cards whose debt you are consolidating. However, there is a catch that you must be conscious debt settlement programs of when laying a program to consolidate credit card debt. The APR rates advertised by most credit card suppliers are the short term APR rates which are meant to lure you to consolidate credit card debt with them. By brief term we mean APR rates that will applicable only for an initial period of less than 12 months or some other period right after which the APR rates improve. When you go on to consolidate credit card debt with these credit card suppliers, they will supply you a lower (even %) APR for the very first 6-12 months and a much higher APR after that. You should check what this higher APR rate is. Your decision to consolidate credit card debt will be fruitful only if the new APR rate is lower than or equal to the APR on your existing credit card. You could check with your existing credit card supplier to see if he is in a position to lower your APR (if that works, it will make things actually straightforward for you).

Ahead of you move on to consolidate credit card debt you must realize that consolidating credit card debt will be advantageous only if you pledge to adopt and follow disciplined method to credit card usage i.e. controlled spending and typical/timely payment of credit card dues.