Credit Card Debt

Credit Card Debt

My Tips to Credit Card Debt Consolidation

The benefits From Credit Card debt consolidation, 'Credit card debt consolidation' seems to be the most talked-about term in the world of Credit Cards. It's true that credit cards have been very useful and convenient for us and we, in fact, treat the credit cards as a necessity. However, with every good you have evil too. In the world of credit cards, 'Credit card debt' is that evil and 'Credit card debt consolidation' is often regarded as a medicine for treating credit card debt.

Anyone who has read any newspaper articles on 'Credit card debt' would already know what credit card debt consolidation is. However, just for the benefit of others, credit card debt consolidation, in simple terms, is the process of consolidating debt which you hold on various high APR credit cards onto just one low Apr Credit Card. Thus, the main benefit of credit card debt consolidation is realised in terms of APR reduction (and hence reduction in credit card debt growth rate).

This is touted as the most important benefit (and sometimes the sole benefit) from credit card debt consolidation. However, credit card debt consolidation comes with few more benefits as well. Some of these credit card debt consolidation benefits are widely publicised by the credit card suppliers and some not so much:

1. Initial APR: As mentioned above, lower APR is the biggest benefit from credit card debt consolidation. Since credit card debt consolidation is used by credit card suppliers as a tool to attract consumers, they generally offer a 0% APR for a initial period of 6-9 months of you joining their credit card debt consolidation programme i.e. first few months after you get the New Credit Card.

2. Standard APR: Lower standard APR (i.e. the long term APR) is the other important benefit from credit card debt consolidation. Though not all credit card suppliers offer a lower standard APR with credit card debt consolidation some do design credit card debt consolidation programmes with good standard APR. These credit card debt consolidation programmes offer a trade-off between initial and standard APR rates.

3. 0% on purchases: This is another common benefit from credit card debt consolidation. The 0% interest (or some lower percentage) on purchases is offered as an incentive for credit card debt consolidation. This credit card debt consolidation benefit is again applicable only for a short initial period.

4. Easy management: This credit card debt consolidation benefit is not as discussed as others. However, one benefit of credit card debt consolidation (from multiple to single credit card) is the fact that you need to track and manage a lesser number of credit cards.

5. Other benefits: The credit card debt consolidation exercise might bring you some more benefits in terms of rebates, discounts and reward points (especially if you move to a co-branded card as part of credit card debt consolidation).

About the Author

Uchenna Ani-Okoye is an internet marketing advisor and co founder of Free Affiliate Programs

For more information and resource links on credit visit: Cheap Credit Cards

How should I pay off My Credit card debt when I just received a lump sum of money?

I recently received a good amount of money from a work related injury and now have the opportunity to pay off the $20,000 of credit card debt I now have in collections. Should I just pay the complete amount I owe or should I settle with the Credit Card Company to pay only 25% of what I owe. This debt has been in collections for two years. What option would be better in the long run? I figure I'm already so late on payments how much worst can my credit get if I settle.

If you have the money, you need to pay off the debt in full.

I believe that when you owe people money, you should pay it. I never base financial decisions on what it might do to my Credit Score.

If someone owed you money personally, I think you would want them to pay you in full.

The only exception I could think of would be that if you are no longer capable of working, and this is the only money you may be getting.

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Credit Card Debt

Tagged with: banking • credit • credit card debt calculator • credit card debt consolidation • credit card debt relief • credit card debt relief government • credit card debt settlement • debt • finance • money

Filed under: Repair Your Credit

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