Owning and using multiple credit cards could possibly be beneficial. But it could also be illogical and impractical especially if you are incurring too much debt on those cards. Furthermore, you may realise that most of your credit cards could come with higher interest rates. If not used responsibly and properly, the use of many plastic cards could leave you in ruins, especially if total debt has become too great to handle.
For sure, you may own a low-rate credit card. Are you aware that you could use that card to consolidate all your other credit card debts at less cost? If you do not own one, it is the right time to find and own a low-rate credit card that offers lower interest rates particularly on balance transfer transactions. Consolidating all or most of your credit card debts into a single low-rate card could help you manage your overall debt effectively and infinitely.
It is logically more advantageous and ideal to transfer debts in high-rate cards into a low-rate one. It is like assuming a lower interest rate on all of your credit card debts. Needless to say, that could be a great strategy and start if you aim to eventually unburden yourself from the accumulated debts you have incurred from the using your credit cards. You could find more interesting and attractive options.
Low-rate card products
There are credit card products that even come with 0% rate on balance transfer, but within a specified period (usually around 6 to 12 months). You may have such a card and use it if you intend to transfer your credit card balances and repay all of those within the time specified. Beware because most of such cards assume higher interest rates on balance transfers after the period specified for implementation of the 0% rate.
Alternatively, there are low-rate credit cards that are meant specifically for balance transfers. You should get hold of any of those. Some of those even come with much lower introductory rates, which you could take advantage of as you gear up to clear your credit card debts. Just make sure the credit limit assigned to you would be sufficient to cover possibly all of your high-rate credit card debts.
There are so many advantages of using low-rate credit cards for debt consolidation. First of course, you could rave about the lower costs on interest rates and other fees. Second, you could enjoy the convenience of having to mind a single credit card debt bill each month and paying just that. You would never have to worry about possibly forgetting to pay one credit card due every time, which would incur additional charges through penalties.
Lastly, the use of most low-rate credit cards for debt consolidation is much easier. You could actually complete balance transfer transactions online, in as fast as just a few seconds or minutes. By this, you could expect to generate positive scores on your personal credit rating. Meanwhile, you could assume a more lenient and practical financial planning to repay your credit card balances that are unified into a low-rate credit card.
Andrew has been writing about credit card debt consolidation and credit card debt for the last 3 years