CARD 0 APR FOR DEBT CONSOLIDATION

2007-03-08 10:33:40

( Financial )



Individuals facing debt problems consider various forms of debt consolidation to reduce debts. Those who don’t own a house use the benefits of card O APR to reduce debt. Card O APR is the absence of a cost charged as a yearly amount consumers pay for using credit cards. APR stands for annual percentage rate. However, it is considered as a short term solution to mounting debt problems. Also, credit card companies usually target individuals with better credit records to avail of card O APR. Thus, individuals struggling with debt problems might have a hard time using this option to consolidate debt.

Card 0 APR is not a long term solution even if one can qualify to avail it. Credit card companies only offer the card 0 APR as an enticement for credit card consumers to switch credit card vendors. Also, the payment terms and condition is stringent. The rate will increase once you missed a payment.

The card 0 APR offer will expire usually within six months to ay ear. Once it expires consumers have to look for another vendor that offers card 0 APR to sustain debt payments. However, opening new credit card accounts on a regular basis could negatively impact on your credit ratings. Thus, experts caution individuals in using card 0 APR for debt consolidation.

Beware of Hidden Fees

Consumers should beware of the costs involved in zero APR which might not be mentioned by credit card vendors in their advertisement to entice credit card consumers. These hidden fees and charges increases the costs of using card 0 APR. Many consumers might not be aware of this reality and might be surprised to find out that they are actually paying more fees with card 0 APR than availing other types of credit to consolidate debt.

Debt consolidation must be used with caution particularly on the type of credit tools that will be used to reduce debt. The goal must be to manage debt efficiently to eventually reduce it. Thus, the options to consider in consolidation must not add up to the debt problem.


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