Debt consolidation is a term you’ll hear often in the adverts for loans – especially home loans. The idea is to take out a loan large enough to pay off your credit cards and other loans, then pay off the loan at a lower interest rate than you were paying on the credit cards. It’s a logical leap – except for one thing. It works even better if you use the lowest interest rate loan available – 0% balance transfer credit cards.
0% balance transfer cards were the product of a competitive marketplace – the credit card marketplace. After years of growth in the credit card market, the providers found themselves in the position of having to entice customers from each other in order to keep on growing their market share. In order to do that, they came up with several schemes to make their credit cards more attractive than those of their competitors. Balance transfer credit cards are specifically designed to get you to shift your existing balance from one credit card company to another by offering you a better deal. And while 0% balance transfer credit cards are a bit more scarce than they were two years ago, they do still exist – and they’ve been joined by other low interest balance transfer credit cards schemes.
The Benefits of Credit Card Consolidation with Balance Transfer Credit Cards
There are a number of benefits to taking advantage of a balance transfer scheme to get control of your credit card debt.
1.Low (or no) interest slows down the mounting of your debt. If you’ve been carrying half a dozen balances on higher interest credit cards, chances are your minimum monthly payment doesn’t even nibble at your outstanding balance. That’s because credit card interest rates are designed to KEEP you in debt, not get you out of it. By moving all of your high interest balances onto one low interest card, you can attack it more directly and keep it from spiraling completely out of control.
2.One monthly payment makes it easier to make the payment on time. Instead of remembering half a dozen different payment due dates, you only have ONE. No more worries about missing or late payments because one of your credit cards fell off the radar.
3.Having one credit card and one monthly payment lets you concentrate your efforts and apply a larger chunk of money where it counts. Add up all the minimum monthly payments that you’re making now. Then compare balance transfer credit cards by minimum monthly payments to see how it stacks up to your current monthly payment. Chances are that the amount of money you’re currently paying out to meet all of your minimum payments will be far above the minimum monthly payment on a balance transfer credit card – which means that with every payment you’ll be hacking away at the outstanding balance and making your way toward being debt-free.
How to Compare Balance Transfer Credit Cards
If you do the math and decide that a balance transfer credit [...]
Archive for April, 2010
Credit Card Consolidation – Make Your Debt Manageable
Credit Card Debt Consolidation – 5 Sure Fire Ways to Make the Most of a Debt Consolidation Service
One of the most popular tools in climbing out of the hole that is credit card debt, is debt consolidation. It goes without saying that credit cards have become a necessity in our everyday finances. Is debt consolidation the answer to your credit card debt woes? The answer to that is yes and no. Consolidating credit card debt is a great first step in the climb towards being debt free.
Before you decide to sign up with a credit card debt consolidation company, understand this: Debt consolidation (or balance transfer) is a component of eliminating credit card debt. It is not a means of deferring the problem for later. The ’set and forget’ mentality will not make your debt disappear.
1) The secret to maximizing a credit card consolidation program, is to consider the initial APR and the Standard APR. Striking a balance between the two is vital. Many debt consolidation companies will offer a 0% initial APR. This means that for a period, commonly about 6-9 months, you will get a 0% APR applied to your account. You then also need to consider, of course, if the firm is offering you a lower Standard APR. Most firms have designed debt consolidation programs with a lower standard APR. Obviously, the lower the Standard APR the better, as this is the rate at which you’ll be making your payments for the rest of your term.
2) Many debt consolidation companies will offer a 0% interest (or some low percentage) on purchases. It usually only offered for a short initial period.
3) I don’t know about you, but I would find it much easier to manage one or two credit cards versus 4 or 5 cards. This is one benefit of credit card debt consolidation that is hardly mentioned. With everything on one or two cards it is much easier to track and manage your finances.
4) There are other advantages which include benefits like additional reward points on the member’s reward program of the credit card you are consolidating debt to. The reward points can often be redeemed for useful goods, rewards or even rebates. It is not uncommon for certain credit cards to cater to your other current needs, including credit limits and how you part with your money. For example, credit cards can be co-branded and offered by an airline that you regularly travel with, meaning you get discounts on air tickets.
So it pays to be vigilant when choosing a credit card consolidation program. These 4 tips will allow to choose the best firm that will lead you to being debt free.
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Tags: Card, Consolidation, Credit, Debt, Fire, Most, Service, Sure, Ways 
No Comments »IVA debt solution: Solve your debt problem at minimal cost
Are you stressed with unlimited debt troubles in your life? Do you want to get rid from them as soon as possible? The best solution to eliminate the debt problem from your life is taking assistance from IVA debt solution. IVA is a best alternative to bankruptcy. With IVA debt solution you will be able to clear your previous debts by negotiating with your creditors.
This fruitful solution is generally provided by a professional organization. The organization assigns an IVA practitioner who takes care of your debts and finds a best way to solve all your financial issues. He arranges a settlement between creditors and debtor and negotiates with creditors as such that a particular affordable amount is paid by debtor to his creditors. The duration of this plan is generally for 5 years.
This kind of IVA Debt service actually reduces the total debts of the borrowers, so that the borrowers can easily pay out the amount at affordable rates to the creditors. Also this IVA debt solution program or service saves a lot of your money as it is much cheaper than any other debt solution programs. Therefore, it a best financial service available for you to get rid from the stressful debt troubles in an appropriate manner.
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IVA Debt is available for you with the minimum debt of £15000. The minimum numbers of lenders needed to avail this plan are 3 to 4. You must have fixed job in a reputable firm with a regular income source.
Hence, with IVA debt solution the problem of multiple debts can be easily sorted out without any hindrance.
