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'Credit card debt consolidation' seems to be the most talked-about term in the world of credit cards. Many people have actually gotten so used to the convenience of credit cards that they've actually made them a necessity.
However, with every good you have evil too. Where credit cards are concerned, the specific debt is considered the evil and often credit card debt consolidation is considered the medicine against that evil.
Anyone who has read any newspaper articles on 'Credit card debt' would already know what credit card debt consolidation is. For the people who haven't ever heard of a credit card debt consolidation though, it is just the simple act of transferring all the debt from your high interest cards onto a card with a lower interest rate.
Thus, the main benefit of credit card debt consolidation is realized in terms of APR reduction (and hence reduction in credit card debt growth rate). This is touted as the most important benefit (and sometimes the sole benefit) from credit card debt consolidation.
There are a lot a few different benefits that you can consider as well. You have probably seen many of these benefits publicized by suppliers of credit cards, but others you haven't:
1. Initial APR: One of the biggest benefits, as I mentioned earlier is the lower APR that you get. In a lot of instances credit card companies will use this consolidation tactic to attract you into getting their card, and they will offer you a 0% interest rate you for a term of 6 to 9 months.
2. Standard APR: Lower standard APR (i.e. the long term APR) is the other important benefit from credit card debt consolidation. Not everyone of your suppliers of credit cards is going to offer a lower standard APR with a consolidation, but many do supply people who do credit card debt consolidation programs with a nice standard APR. What you normally end up with is a trade-off between initial and standard APR rates.
3. 0% on purchases: This is another common benefit from credit card debt consolidation. The 0% interest (or some lower percentage) on purchases is offered as an incentive for credit card debt consolidation. These aren't never a full-time benefit though, only for a limited time.
4. Easy management: You rarely hear of this debt consolidation benefit. This is just the obvious benefit that allows you to manage just a single payment instead of multiple payments.
5. Other benefits: Some of the other benefits that you might receive any consolidation include rebates, discounts, and reward points, this is particularly true if you move into a co branded card.
However, with every good you have evil too. Where credit cards are concerned, the specific debt is considered the evil and often credit card debt consolidation is considered the medicine against that evil.
Anyone who has read any newspaper articles on 'Credit card debt' would already know what credit card debt consolidation is. For the people who haven't ever heard of a credit card debt consolidation though, it is just the simple act of transferring all the debt from your high interest cards onto a card with a lower interest rate.
Thus, the main benefit of credit card debt consolidation is realized in terms of APR reduction (and hence reduction in credit card debt growth rate). This is touted as the most important benefit (and sometimes the sole benefit) from credit card debt consolidation.
There are a lot a few different benefits that you can consider as well. You have probably seen many of these benefits publicized by suppliers of credit cards, but others you haven't:
1. Initial APR: One of the biggest benefits, as I mentioned earlier is the lower APR that you get. In a lot of instances credit card companies will use this consolidation tactic to attract you into getting their card, and they will offer you a 0% interest rate you for a term of 6 to 9 months.
2. Standard APR: Lower standard APR (i.e. the long term APR) is the other important benefit from credit card debt consolidation. Not everyone of your suppliers of credit cards is going to offer a lower standard APR with a consolidation, but many do supply people who do credit card debt consolidation programs with a nice standard APR. What you normally end up with is a trade-off between initial and standard APR rates.
3. 0% on purchases: This is another common benefit from credit card debt consolidation. The 0% interest (or some lower percentage) on purchases is offered as an incentive for credit card debt consolidation. These aren't never a full-time benefit though, only for a limited time.
4. Easy management: You rarely hear of this debt consolidation benefit. This is just the obvious benefit that allows you to manage just a single payment instead of multiple payments.
5. Other benefits: Some of the other benefits that you might receive any consolidation include rebates, discounts, and reward points, this is particularly true if you move into a co branded card.
About the Author:
If you are looking for a different solution to your credit card debt, you might want to look at non profit consolidation as an alternative. Read more at http://www.mydebtconsolidationsite.us
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