Using Credit card offers to Consolidate credit card debt is a good idea or rather we are led to believe it is if we choose to listen to everything we hear. On this occasion however it is very difficult to argue with those people voicing that opinion.
In fact it is one of the first steps that should be taking to address the problem of excessive credit card debt, but many people wonder what they need to do and how to go about credit card consolidation.
It is easy to understand why so many people are confused when they are faced with the sheer volume of choice available to them and many of them wonder whether they should just opt for the lender that advertises the lowest APR.
The answer is never quite that simple as the number of lenders offering promotions is large and it is well worth taking your time to check out as many offers as possible comparing everything the offer entails and not just a low Apr.
As mentioned, there is an ever increasing number of credit card balance transfer offers available for you to choose from and new and more attractive offers appear every week asking you to consolidate your credit card debt with them.
There are three primary things you must always look at when considering a balance transfer offer;
1. The special introductory APR; the lower the better.
2. The length of time that the introductory APR lasts for; normally between 3 to 12 months but the longer the better for you.
3. The standard APR that the card reverts to once the introductory period ends; again, the lower the better.
Each of these is important but let's take a closer look at just how important they all are:
The Introductory APR is without doubt the lure that tempts people into signing up with a service provider and is what most people will look at when considering using a card for consolidation purposes.
It is still possible to find cards that offer a 0% introductory APR and these should be checked out first of all. An introductory offer, irrespective of whether it is 0% or a low Apr, will provide some much needed breathing space with which the user can reduce and hopefully eliminate their credit card debt.
Needless to say the longer the offer period the longer the period of time you have without paying interest and the further you will be able to eat into your debt. If the offer period is long enough that you are able to clear your debt, fantastic; if not, then you will still have succeeded in reducing your debt load as well as saving yourself a huge chunk in future interest payments that you would have otherwise had to pay.
That brings me nicely onto the standard APR. If you were unable to clear your debt using the introductory offer and are still left with a debt balance then knowing the standard APR is vital.
There is absolutely no benefit in taking advantage of introductory offers, no matter how good they are if you are left with an outstanding balance at a high interest rate. If you were to end up in this situation it would take a very short time to reach the same level of debt as you experienced before and you could even end up in a far worse situation.
However, if you are confident that you will be able to completely clear your credit card debt, in its entirety, during the introductory period, you can certainly be more flexible when making your offer choice.
It's quite simple really, the card that matches your requirements, both current and future, is the card best suited for your needs.
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