Consolidating Credit Card Debt

Credit card use is one of the biggest contributing factors in the growing debt problem today. Consumers find it easy to overspend and purchase beyond their means when a plastic card is all they need to achieve some retail gratification.

With the American average credit card debt per household reaching almost $10,000, credit card debt is already a very big problem by itself. But if you are like most Americans, paying for all of your credit card debts in one go would probably mean starving for the next three months or so. If making a one time payment is beyond your means, you can look towards the next best thing nowadays, which is debt consolidation for your credit card debts.

Some Simple Switching

The best way to consolidate your credit card debts is to look for another credit company or credit card that offers a lower APR or a longer time for you to pay your bills. That way, you get the benefit added to all your future purchases. It is an additional load off your mind for when you use your credit card to buy something in the future.

Companies who have policies like the one above that give you leeway also have other promotions to entice you to transfer accounts. Most of the time, you have the choice between lower interest rates for a long period of time, no interest for a short period of time and other similar policies. They sure come in handy for easing the pressure of your creditors asking for payments due,

At the same time, switching or transferring your account gives you the time benefit of debt consolidation. You get a time extension on the bills you have to pay, both for the deadline and for the APR or interest earning period. Transferring means you have to pay less interest and excess fees for the same amount of time.

Pay as You Go

But don not forget that consolidating your debts only gives you a little more time to pay off your debts. It does not pay off your debts for you and neither will it keep your creditors away from your doorstep forever. You will still need to pay your bills and dues eventually.

If you are going to do the transfer routine more than once, make sure you pay off some of your debt during the time that you are at each company. The credit companies will see when you just keep skipping from one account to another without any real improvement in the state of your debts. Keep doing so and you just might find yourself at a dead end, without any credit companies willing to catch you and with a load of debts on your hands.

Credit cards offer a convenient method for consolidating your debts. Not only do your debts get consolidated but other freebies and incentives are thrown into the equation for you as well.

If you do decide to consolidate using a credit card, don not forget to do some comparison shopping to find the best deals on credit card offers. There are a lot of offers and packages out there so you have got to pick the one that suits your needs and situation most.