How Credit Card Debt Consolidation Can Help - By: Paul McDermott, Posted on: 2007-08-01

You probably get flooded by ads everyday for credit card debt consolidation deals. Whether on TV, mail or email, they are out there and they want you. Let's face it, if you are a spender and use credit cards, then you are in their target market. But before you run for the hills from these ads because of their slick look, there are some benefits that you can gain from credit card debt consolidation if you choose wisely.

In case you are unsure, what I mean by credit card debt consolidation is combining your current card balances into one account, which is usually a brand new card, although you could consolidate onto a card you already have.

The biggest benefit from consolidation usually results from the lower interest that you will pay. This can save you a lot of money, especially if you have a big balance and will need to pay it off over a few years. There are some other benefits to consolidation too.

Initial APR: This is usually the grabber. Pay 0% for some intial number of months, often 6 to 9 months, but sometimes more. Again, this can get you started if you are serious about paying off your debt.

Standard APR: If you have a lot of debt, then you will probably still have a balance after the initial low rate. Be careful not to take a deal that has a 0% initial rate but then a standard rate that is too high.

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. This credit card debt consolidation benefit is again applicable only for a short initial period.

Easy management: What I like most about consolidating credit card debt is that it makes it easier to see your balance decreasing. (You are paying your debt off, right?) With one card and one balance, you can track your progress more easily.

Other Benefits: These are not as important, but you might get rebates, discounts or reward points depending on the type of card you get. Don't let this be crucial, but just an additional plus if you get it. You might even ask for something like this. Sometimes the phone rep holds things back and adds them if that will close the deal.

So you get your card in the mail. The big question is how are you going to manage this new line of credit. Did the accumulation of debt wake you up so that now you will quit spending beyond your means and get your debt under control? Or will you just drown faster by spending more now that your other cards are at zero balance? You know the right choice.

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Author Paul McDermott reveals more about his experience with credit card debt consolidation and other credit and debt issues at Credit Card Debt. Learn about his mistakes so you can avoid them.
This and other unique content credit card debt consolidation articles are available with free reprint rights.

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