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How to consolidate credit card bills through balance transfer

How to consolidate credit card bills through balance transfer

Often people transfer their balance from one card to another with a low interest rate, so that it becomes much easier to make payments. Sometimes people use the balance transfer strategy for credit card debt consolidation. This is done to lower the monthly payment on your credit card debts.

Credit card debt consolidation is when you consolidate all your credit card bills into one so that it becomes much easier for you to pay off the debt. As all your debts are consolidated into one, you need to make a single monthly payment. To consolidate all the debts into a single one, you can transfer balances from all high interest cards to that of a low one. This is very helpful for those finding it impossible to pay off the credit card debt.

The 0% balance transfer offer allows you to transfer balances from another card to this one up to the credit limit offered by this 0% card. This means that you won’t have to pay any interest on the balance transfer, thus you can save more money.  However this offer lasts for a specific amount of time, generally 6 months.

After this period expires, the normal interest rates will come into effect, and will be applied to the remaining balance. However, for this 0% balance transfer you will have to pay a fee to the 0% card company.

While applying for balance transfer, always choose the card which offers 0% balance transfer for a longer period of time. However, you should keep in mind that you should try paying off the debt within the 0% interest period. If not possible, you should at least try to minimize the outstanding debt amount.

Else, if the 0% interest period ends, and if the credit card company increases the interest rate, you may drown into more debt.

Thus, before you can get a credit card you need to consider whether or not you will be able to pay off the debt within the offer period. You should also try to know the normal interest rate on the card, whether you will be able to manage payments on this card after the offer period.

Another thong to keep in mind is that you should never be late on your payments, and default on any other agreements on this card. Else, you will end up paying more rather than making low payments, and saving more money.



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