Debt Consolidation Credit Card to the Rescue
Contributed by Victoria Knox
Save Your Credit Rating with a Debt Consolidation Credit Card
If you are in over your head with credit card balances, a debt consolidation credit card can be lifesaver. The thing about credit cards is that once you start using one, it's easy to get more. More cards and more credit. Bank credit cards, gas cards, and department store cards can add up to a lot of credit available, which can lead to trouble. You go along using this card or that one. You accumulate balances, which grow each month when you are charged interest.
You may be able to cover the minimum balance on each card, but doing that will take years to pay off the balance. Suppose you miss a few payments here and there. Now your lenders punish you by raising your interest rates, a lot, getting you even deeper in debt. One solution may be to consolidate your balances onto one debt consolidation credit card. Consolidating your balances on one card with a lower interest rate can help you pay them off faster and keep you from damaging your credit rating.
How a debt consolidation credit card works
If you want to consolidate your credit card balances, it's best to apply for a new debt consolidation credit card before your credit rating is badly damaged. If you have defaulted on your payments for several months, it may be hard to get approved for a new card. Look for cards with lower rates than you have now. Be careful of really low or zero percent intro rates. Check how long the intro rate period lasts and what the interest goes up to once the intro rate ends.
Once you find a good card for you, send in an application of apply online. Most credit card applications have space to indicate any balance transfers you want to make. If you are approved for the debt consolidation credit card, the new lender will pay the balances you indicated on your application. Make sure to keep paying on all credit cards while your new application is pending, which can take a few weeks.
