Whether you've had an emergency or were living beyond your means, you may find yourself with credit card balances that you can't easily pay off. One way to help manage and pay down your credit card debt is to consolidate it.
What Is Credit Card Consolidation?
- Lower interest rates
- A single monthly payment
- The ability to close your extra credit cards if it will help you control your spending habits
- A potentially higher credit score
What to Look for in a Consolidating Card
- Is the interest rate lower?
- Is the interest rate permanent or temporary?
- If the interest rate is temporary, can you pay off the balance before the special rate expires? If not, what is the regular rate?
- Is the offer a "deferred interest" offer? This means that if you don't pay off the balance by the end of the promotional period, you'll be charged back interest as if you never had the promotional rate.
- If you make additional purchases on the card, will the promotional rate apply?
- What are the balance transfer fees? Consider these as extra interest when you compare rates.