Credit Card Debt Consolidation
is Almost Never a Good Idea
People get into debt and don’t know how to get out of it. This
is a simple fact of life. Once you get in over your head, you
start trying to figure out how to fix it and many times the
choices you make are not the ones that are going to be the
wisest decision for you in the long run. There are ways of
taking care of your debt, and then there are bad ways of
extending your debt – as that is what they normally end up
being.
One big way that will not help you in the long run is balance
transfers. This is the way it normally works – you get a credit
card and you run it up, then maybe you get a second card and run
that one up to, then you get a third card that is offering you
0% interest on balance transfers so you transfer your balances
to that card. However, the 0% is only for six months and you
paid a balance transfer fee. Then you get another card in and
they offer you the same deal – so you wait until your six months
are up and you transfer your balances again, only now you don’t
have enough space to transfer all of it plus the two first cards
that you have already racked up. So you transfer your highest
interest rate to the lower interest rate and pay another fee,
and then you rack up that card, and – do you see where this is
going?
Using your credit cards as a debt consolidation never helps. You
will only end up with a wallet full of credit cards and no way
to pay them back. Instead, get a debt consolidation and pay off
all of your cards moving their balances to your new debt
consolidation loan. Then you take the other credit cards and get
rid of them so that you don’t run them back up. Then pay off the
debt consolidation loan and now you are debt free.
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