debtIf you’re getting in over your head, you may want to look into how to consolidate credit card debt.  One of the fastest and easiest ways to do this is with a new credit card. A new credit card can help you eliminate some of that debt on your other cards, as well as non-credit card debt (such as medical bills, etc.).  Here are a few things to look for when selecting a credit card to use for debt consolidation.

Look For 0% APR Interest

Getting a 0% APR interest card will help you cut down on the total amount of money you pay each month.  Make sure the 0% APR will last for at least a year. This means you won’t pay any interest for as long as the 0% offer is in effect.

Balance Transfers

Take the debt from one credit card and put it on another. However, be sure to avoid cards that have transfer fees, since you’re trying to reduce your debt, not increase it through needless fees.  Also try to find a card that doesn’t charge higher interest for transferred balances, since some cards are sneaky and will try to fit this clause into the fine print. 

Make Large Payments

Make as large of a payment as you can each month to reduce your debt quickly.  Don’t just pay the minimum balance, as this will just keep you in debt longer.  As long as your 0% interest period is in effect, get the most out of it by paying down your debt as much as possible each month.

Make No New Purchases on Your Card

Look at this card as a debt consolidation loan, not as another line of credit.  View this card as a way to get control of your finances, and you will be rewarded greatly by becoming debt-free in a short amount of time.

Find Rebates And Rewards

In order to save even more money when you consolidate credit card debt, look for cards that allow you to save anywhere from 1% to 3% when you transfer your balances. Further, find a card that lets you receive this in the form of a rebate or reduced payment each month. This is the best way to consolidate credit card debt and regain control of your financial life fast!

This is the second installment in our credit & debt series. Be sure to check back for updates…

Filed under: Debt & Credit

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