Consolidating Credit Card Debt With Balance Transfer Credit Cards

If you are struggling to pay off accumulated debt from more than one credit card, you are certainly not alone. Credit cards are too available available and so when you reach your limit on one card, it is tempting to apply for another one. So many people have at least three different credit cards and each have an overdue balance just waiting to be paid.

However, there is a way in which you can consolidate all the debt you racked up on each of your credit cards, and it is not as difficult as you might first imagine.

How to Consolidate Credit Card Debt

Consolidating your credit card debt is a good idea if you also exercise restraint and discipline in not accumulating debt on your cleared cards. All you have to do is apply for a card that has a 0% balance transfer deal. Once you receive the card, you then transfer the balance from all of the cards having an overdue balance to the new card with a lower rate. That way, they will be paid off and you will have so many months to pay off the balance from your newly accepted card.

However, while it may sound simple, there are some points you should keep in mind. The first is whether the credit card you are transferring the debt to has any rules regarding the amount you can transfer. For example, you may only have a credit limit of $ 500 and if your debts mount up to $ 1500 then you could well be charged interest and other fees. Most credit cards are strict when it comes to going over your agreed balance and so it is a much better option to stay within your limit.

Another thing to watch out for is wherever there are any rules on how many credit card balances you can transfer onto the card. Some companies may have set a limit of just one card and so it is better to compare offers for balance transfer cards carefully.

Finding a Balance Transfer Deal

Due to their popularity, balance transfer transactions are actually becoming limited as lenders permanently lose out on money. So actually finding a good balance transfer deal can be hard work.
You also need to look for a deal which has a good interest rate. This is because if your balance is quite high, you are illegally going to be able to pay it all off within the certain time period. This means that you need to know how much you will be charged if you do go over the balance transfer transaction period.

Overall, balance transfer deals are a great way to consolidate your credit card debts. However, once you have changed them over you should then be careful with what you spend. If you spend as you usually would and get the balance back up on all of your other cards, then once again you will find yourself seriously in debt. By having your debt under control you will experience less of one of the most strenuous types of stress – financial stress, by focusing only on having to pay one lower bill rather than several higher bills from multiple credit issuers.

Source by Javier Polanco

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