Debt Consolidation Credit Cards May Help You Get Out Of Debt

2008-10-15 10:15:22

( Financial )



Debt consolidation credit cards are cards which offer low interest rates that should be beneficial if you have accrued debts from several credit cards. To make debt consolidation credit cards work, you transfer all your balances from different credit cards to a single low interest card. This way, it is easier to manage your credit card debts.

However, there are things that you should watch out for in debt consolidation credit cards. You need to verify whether the low interest rate is effective for the life of the credit card balance, or it is only good for a few months. If you are able to get one of the debt consolidation credit cards which carry low interest rate only during a certain number of months, say four or six months, these cards will revert to higher rates.

Be sure to inquire if the debt consolidation credit cards have the same interest rates levied on new purchases and the transferred balance. Only a handful of debt consolidation credit cards extend the low interest rates to your new purchases. It may surprise you when you receive your first statement of account without reading the terms and conditions of debt consolidation credit cards.

For debt consolidation credit cards to work in your favor, you must have the financial discipline and firm commitment to repay your balances. You must make sure that you do not use your credit card to pay for purchases.Use cash or debit card, instead. Always keep in mind to repay your monthly bills on time. You would not want penalty charges to be levied on top of your balance.

Make it a personal policy to repay your credit card debt more than the minimum repayment required. Otherwise, forget about getting out of credit card debt through debt consolidation credit cards.


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