Consolidating Your Credit Card Debt
It happens to the best of us. You diligently try to pay your credit card balance every month. But if you make a few extra purchases one month or you have a medical emergency that costs hundreds of dollars, suddenly, you’re faced with how to consolidate credit card debt.
You can start by looking at 0 balance transfer credit card offers from your current accounts. Or credit card debt consolidation mailings you get from other companies that have enticing offers for lowering your monthly payments.
|
Below is a list of Frequently Asked Questions — and our Frequently Provided Answers about 0 balance transfer credit card, credit card debt consolidation, and consolidate credit card debt.
Q. What are some of the disadvantages of having too many credit cards?
A. Many of us have a 0 balance transfer credit card from airlines, banks, retail stores, hotels, and more that we use from time to time. But if you use a handful or more of these credit cards on a regular basis, you’re most likely charging more than you can pay off each month. So in no time, you’ll probably need to consolidate credit card debt.
Some of the disadvantages may include:
- Paying high annual percentage rates on your credit card balances, even with 0 balance transfer credit cards.
- Paying late charges on your balances if you don’t pay the minimum statement fee.
- Being assessed more fees, like finance charges, on your balance, multiplied by your pro-rated periodic interest rate.
- Paying annual membership fees for credit card debt consolidation on cards you no longer even use, but have used in the past.
- Paying return balance transfer check or check convenience fees after you consolidate credit card debt.
Q. What happens when you have too much credit card debt?
A. When you have too much debt, you’ll start sliding into a very unpleasant cycle of paying just a portion of the monthly balance on each credit card. But you&rsqre actually beginning a habit that’s hard to break — getting deeper in debt with no plan to stop.
The best approach is to actually try credit card debt consolidation with one card at a time. You can roll the payments of one card into a second one and pay it all off. Or, if you want to make life even easier, consolidate credit card debt with one card offering 0 balance transfer credit cards.
Q. How do you handle card cancellation for credit card debt consolidation?
A. First, stop using 0 balance transfer credit cards where you have the highest balance to pay or cards where you—re paying the highest interest rate. They—re costing you the most per month in late fees and finance fees, respectively.
Then, to cancel your chosen cards for credit card debt consolidation, it—s recommended that you call the credit card company at the number listed on the back of your card or on the monthly statement, tell them the reasons you no longer want to use that particular credit card, then destroy the card by cutting it into many small pieces. See the next question for how to combine that card—s debt with others to lower your monthly fees.
Q. What—s the right way to consolidate credit card debt?
A. The most logical way is to find a 0 balance transfer credit card for credit card debt consolidation or an offer for a $0 balance transfer.
- First, it’s really a very simple process. Look in the newspaper, online or in your daily mail for solicitations from your current credit card companies and others offering $0 or 0% interest balance transfers on your existing credit card balances.
- Next, when you—ve found the right 0 balance transfer credit card, sign up for the service by completing all of the paperwork required with the list of all the credit card debt consolidation you wish to have done. In some cases, you may receive a letter with a few Gift Checks attached that you can use like cash to pay off your credit cards with other companies. These will all be combined and transferred into your new card—s balance.
- Then, you’ll be able to consolidate credit card debt from cards with higher annual interest rates into one card with a lower APR — and hopefully — a $0 balance transfer fee or 0 balance transfer credit card, which means taking the collective balance from several or more cards and combining them into one card with a lower APR.
- You’ll end up with one monthly statement for all your current credit card consolidation balances.