Balance Transfer: A Useful Tool For Credit Card Debt Consolidation

You can carry out credit card debt consolidation through balance transfer of credit cards. While taking into account consolidation of credit card debt with the help of a balance transfer, you should carefully check the balances and interest rates of every credit card that you have. Subsequently, you should select the credit card carrying the lowest interest rate and balance to transfer to.

Balance transfers may be complicated. If you opt for a balance transfer to consolidate your credit card debts, you should go through your credit card statement attentively. A few credit cards provide for fee waivers only for the purpose of initial balance transfers. Any other form of balance transfer entails cash advance fees that are highly expensive.

If you select balance transfers for consolidating your credit card debts, you should also ensure that you are making the minimum payments on the previous card and at the same time, anticipating for the transfer to become operative. In other respects, you might be fined with a late fee of $29 and a penalty rate that is the worst thing which can happen to an individual while attempting to reduce credit card debt.

The previous credit card provider must inform you as soon as the procedure of debt consolidation is over. If you do not get the notification, you should ask for one. You must not forget to jot down the name of the individual with whom you talked, the time, the date and what was discussed with you. Following the receipt of the notice of accomplishment of your credit card debt consolidation, you ought to close your previous credit card accounts.

As soon as your credit card debts are consolidated, you should ensure that you are making every payment promptly on a regular basis. Otherwise, the rate of interest may rise from 8% to 21%, or even more.

In spite of its negative aspects, credit card debt consolidation with the help of balance transfers is a useful approach to eliminate credit card debt.