Debt Consolidation - Is Credit Card Debt Consolidation A Good Idea?
This technique for debt consolidation involves getting hold of a credit card where they charge a low interest rate instead of annual fees. After you have submitted your application the credit card company will run a check on your credit history. As you do this you will have the opportunity of getting all 3 of your credit card reports at no cost to you.
Hunting for credit cards online gives you the options of choosing from many types of cards that are either secured or unsecured. You also have cards that are either suitable for borrowers that are considered high risk and those borrowers that are in the low risk category. If you choose these cards, you will find that they can really help you consolidate your debt if you only use them for that purpose. By paying your debt in this way you will have paid your debt but you will now have it on your credit card as there is where you have now transferred it. The advantage of this is that now you will have another month to repay the debt, enabling you to find enough time to find other plans or resources that will more effectively service your debt.
An even better way to look at it is that using this method you can, if you are really struggling to pay the debt off, resort to only having to pay the minimum owed on the card every month. But you should only do this with low interest bearing cards and if no other resources are open to you.
Some people also apply to receive a credit card and then use it to consolidate their debt and they then further apply for another credit card that has lower interest to pay that first card off. This is not such a great method for debt consolidation but can be effective when there is no other way you can follow. It might be a good idea to review information online dealing with debt consolidation, debt settlement and debt negotiation to see what methods are available and see which one are the best for your circumstances.
In summary credit cards can be a good idea for debt consolidation in the short run and if the debt is not so high in respect with your current circumstances. However if you do not manage your credit cards properly using this method, they can further affect your financial bad habits and make your debt problem even worse. On that note I suggest you therefore take care if this is the route you are thinking of using as your debt consolidation strategy.
