You Do Not Necessarily Have To Hire A Debt Consolidation Company In Order To Manage Your Outstanding Credit Card Balances

Category: Finance.

You do not necessarily have to hire a debt consolidation company in order to manage your outstanding credit card balances.

Unlike credit consolidation companies, you will not be able to turn all of your credit card debts into a single personal loan, but you can transfer your old balances onto a new card. It is possible to do it yourself, by using another credit card- one geared especially toward consolidating other card balances. These consolidation credit cards are a sort of do it yourself debt consolidation. In order to catch more clients, consolidation credit cards typically offer just the opposite of traditional credit cards: lower interest rates and no annual fees. These can get you out of debt relatively easily, if you know how to stick to the payment and lower your monthly expenses at the same time. On the Internet, there is stiff competition going on among credit card companies. You might even be able to save some money by transferring other debts onto this new card.

Among debt consolidation cards, many of them would offer you, a very low, upon sign up interest rate on balance transfers, or the amounts of your outstanding debts with the other credit card companies. If you had a loan with an 8% interest rate, and your new card had a 3% introductory interest rate, depending on the amount of time left on the loan, it may be wise to transfer your balance over to the card with lower interest. Many people like to go from one company to the next, chasing the lowest interest rate, this method is, but at best tricky. You must note, however that these introductory rates are only good for a specified period of time, after which your interest rate will shoot up to around 20% or more. There are still some good reasons to consider these do it yourself methods of credit card consolidation. By doing a bit of comparison shopping and computing a bit of math in the process, you might just find that you can save more by consolidating all your loans under one of the debt consolidation credit cards that offers the lowest rate.

While interest rates for credit cards have always been high, lots of companies are dropping their rates in an effort to get more customers. Credit consolidation credit cards to not have a monthly fee, which is quite unlike other credit cards. These companies are happy to let you transfer over your existing card balances, and may offer to reduce these debts. They are being forced to cut these annual fees in order to get customers because there is such a flooding of companies available these days. It is wise to note, however that you will still be paying interest on your transferred balances. These companies will negotiate with all of your creditors to reduce your total debt before consolidating it into one monthly bill and one single account. If you do not like the offerings of consolidation credit cards, you can always turn to a debt consolidation company.

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