Consolidating Credit Card Debt With Benefits

What does it mean to consolidate credit cards? What’s the fuss about consolidating credit card debt? I mean, why is consolidating credit card debt such a hot topic for discussion in the credit card industry and the media?

The act of transferring the balances on different credit cards into a single credit card - or sometimes multiple credit cards - is what is mostly termed as credit card debt consolidation. However this method of consolidating credit cards is usually referred to as ‘balance transfer’.

Generally, when consolidating credit card debt, you replace a credit card/credit cards on a higher APR with a credit card/credit cards on lower APR.

Here’s how consolidating credit card debt works:

Credit card debt grows in 2 ways: either on account of fresh spends on your credit card or as a result of additional interest charges based on the interest rate/APR on your credit card. Consolidating credit card debt by having a lower APR rate on your credit card(s) means a slow growth on your credit card debt.

Since, one of the methods of consolidating credit card debt involves the transfer of the balance from one credit card to another, credit card suppliers lure customers away from other competitors by making balance transfer offers very attractive. The mouth watering benefits attached to consolidating credit card debt via balance transfer, is one of the fastest ways credit card suppliers pull in more customers.

Credit card debt consolidation offers make the exercise of consolidating credit card debt even more logical and meaningful to the customer. Arguably, the biggest benefit of consolidating credit card debt is 0% interest on balance transfers generally applicable for a 3-9 month period. Other benefits for consolidating credit card debt may include interest free purchase, reward points, amongst other.

Consolidating credit card debt seems to be an ideal way of dealing with your credit card debt problem.