Credit Card Consolidation: Important Facts About Credit Consolidation

Out with the old, in with the new

Much of the debt owed by consumers is through credit cards. If you have 1, 2, 3, or more cards, you probably are paying high interest rates on several of your outstanding balances. Your JC Penney, Macys, even your regular Visa or MasterCard can be charging you interest rates in excess of 20%! You can get out from underneath these burdens by selecting a new card with a low APR and transferring your balances over. In effect, you have created a credit card consolidation with your new card. Just don’t use your old cards again as you might find yourself with more debt than you can possibly manage!

Lower monthly payments, low APR

By transferring your high balances, you can save several hundred dollars per year in interest payments. With some cards, you can even get an introductory APR of 0% for the first twelve months. After that your variable rate is likely to be lower than what you paid for your store cards, bringing home big savings for you. In addition, you will have more money to pay off your existing balances faster. In effect, a credit card consolidation can help you get out of debt quicker. Less debt, better credit rating

By paying off your debt faster, your credit rating will improve. An improved credit rating can have a positive effect on future borrowing, especially if you are considering purchasing a new car or a home. All of this good stuff happens because you made the smart decision to go the credit card consolidation route to attack your debt.

Is everyone eligible for a credit card consolidation card?

Unfortunately, that answer is no. If you have very bad credit you likely will not be eligible. Still, unlike a debt consolidation loan done through your bank’s lending department, there are no application fees to apply for a credit card. So, go ahead and apply and you just may find yourself selected to carry a little piece of plastic that can go a long way toward helping you to achieve credit card consolidation.

Click here to consolidate high interest balances with a Balance Transfer Credit Card. Ed Vegliante runs www.Credit-Card-Surplus.com,a directory of credit card offers.

Does Credit Card Consolidation Actually Lower The Rate Of Interest?

Credit card consolidation is a way of overcoming your outstanding debts by paying lower interest rates than what you were actually paying.

Many people have at least eight to ten credit cards in their pocket. These credit card holders often misuse the card by making purchases which they cannot afford. They forget that these purchases are to be paid someday with some rate of interest. Pilling of bills get them in situation where they find themselves trapped under a credit debt.

If you are under a burden of credit card debt and want to get rid out of it faster you need to go for credit card consolidation.

What actually does credit car consolidation do?

Consolidation of bills can help a person lower the amount of debt and pay his unsecured credit debt faster. He can take care of his debts by merging all his payments into a single loan at a lower rate of interest that what he was actually paying. If your debt is credit card debt then bill consolidate is probably the best option.

For Instance:
A person who does not undertake credit card consolidation

• Lets say a person has a credit card debt of $1000
• The rate of interest he has to pay is 20%
•This means that at $1000 credit card debt the person has to pay an interest of $200

A person who undertakes credit card consolidation

• He merges his payments to a single loan.
• Let’s say he too has a credit card debt of $1000
• Due to bill consolidation he has to pay an interest rate of 9%
• This means at $1000 credit card debt the person ahs to pay an interest of $90
• This means an annual savings of $110 in interest charges.

He writes for free-instant-credit-report.info, offering the latest information on credit cards, visit them today for more best buy credit cards.