Best method to consolidating credit cards
In the best-case scenario, the consumer would open the card during a promotion at a “teaser rate.” This rate is low, sometimes zero percent, and lasts only for a promotional period, say 12 months.
Best method to consolidating credit cards video
Today we are going to talk about how to consolidate credit cards by refinancing your credit card debt into a singular loan or account with a singular payment.
As you might guess, this can be done in several different ways, some more dangerous than others. This is the most literal method of consolidating credit cards.
We will cover most of these and show the pros and cons of each method along with suggestions and words of caution so that you can make informed decisions and put yourself in the best financial position. In the case of balance transfers, the consumer actually takes multiple credit card balances and merges them all onto one credit card.
Along the way, we will also highlight the features of a different program that is much safer and better for long-term financial health. The idea is that this new card will have a lower interest rate than any of the cards that were consolidated.
On the other side of things, consumers have abused balance transfers by using the strategy repeatedly, hopping from card to card.
Both of these factors have made creditors less willing to promote balance transfer at tempting promotional rates.Even though cards may come with a low APR, there may still be balance transfer fees.This will have implications on how smart of a decision it is to use consolidation and may limit how much you are able to save with this method.For instance, if you transfer ,000 and a pay a balance transfer fee of three percent, this will amount to 0.Consumers who opt for a balance transfer should implement some basic strategies that can help them save: This is a generic term describing any loan that is used to pay off other debts.Within this category are different types of loans, some riskier than others.