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Credit Card Consolidation: It's Easier Than You Think!

By Edward Vegliante

Republish: EasyPublish™ Published: 29Aug2006 Word count: 500 Viewed: 361 time(s) Get Free Content For Your Site

If you have one credit card, you probably have two. And if you have two credits cards it’s within the realm of possibility that you have three… or five. Carrying a balance on those cards is enough to make anybody’s head spin. Fortunately there is an easy and intelligent way to help you get ahead.

Stop Relying On Home Equity

The real estate craze over the last few years was accompanied by cheap and easy mortgages. And with that came the temptation to consolidate credit card debt through a home equity loan. Even with interest rates on the rise this is still a popular option for those who carry other debts. BUT, it’s not necessarily the best option. While you can take advantage of relatively cheap bank loans, you are still paying interest on your commitments and not doing yourself any favors in the process. If you really want to get ahead you need to cut out that interest all together, and that is where 0% APR or balance transfer cards come in.

It is a Simple and Effective Move!

If you’re consolidating your debts anyway, you might as well buy yourself some breathing room to pay down those balances while your lender gives you a grace period. Avoid paying more than you have to. For instance, the Chase Platinum Card offers a twelve-month introductory rate of 0%. This obviously means that all of your payments go toward the principle on your debt. You will see those interest payments vanish, and your overall monthly bill shrink. This is the best possible scenario for anybody playing catch up with high interest rate debts. It is an even better option than a home equity line of credit. Any homeowner knows that loan amortization makes sure you’re paying interest first, and paying on your principle last. So, if you want to keep the headway you’ve made on paying off your home, you should look into a balance transfer credit card.

It is Easy to Get Started

It is so easy to get this process started, that you might kick yourself for not doing it sooner. The popular balance transfer cards available are the aforementioned Chase Platinum Card, the Discover Platinum, and Citi Platinum Select Card. When applying for a balance transfer credit card you will be asked to provide information on the accounts for which you wish to transfer. After your account is open, you can consolidate additional cards by using checks that are provided to you by the issuer of your new credit card. While banks usually charge a small fee to transfer a credit card balance, usually 3% or no more than $75, some banks charge no balance transfer fee at all. Also there are many offers available that not only have an introductory rate of 0% APR, but also have no annual fee. This is how credit card companies battle for your dollar, and this is how you should take advantage of it.

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