How To Prioritize Credit Card Debt For Consolidation

Many times people with credit card debt feel they are alone. However, this is definitely not the case. Today, millions of Americans find themselves in a similar situation with credit card debt. With so much debt, it often is overwhelming and it’s hard to tell what to do next. Luckily, with every problem there is a solution. One of the most important things to do when in credit card debt is to prioritize debt for consolidation.

The first step into consolidating debt is to figure out which debt has the highest interest rate. Some debt works against you, while others can actually end up being a good thing. Debt on your mortgage payments, as well as student loans can provide tax breaks. Those who have credit card debt should definitely look at lowering that before trying to lower home and student loan debt. Next, you should take a look at and list which of your credit cards has the highest interest rate. If possible, try and pay down the credit cards with the highest level of interest first, making minimum payments on the others. In the long run, this will save you from steep interest charges from your high rate credit cards.

Once it has been determined which type of debt has the highest interest rate, most likely credit cards, it is time to start the consolidation. Consolidation is helpful because the person in debt can move account balances from a high interest credit card to a lower interest credit card. This can be immensely helpful for those who find themselves with multiple credit cards. Likewise, consolidating debt into one credit card means one payment, rather than having to juggle multiple payments on multiple cards. This can make life much easier.

When consolidating debt you should consider what kind of fees are involved for moving around the debt. Some credit cards will allow you to transfer balances onto it, but may charge you a fee for the balance transfer. People and that will often try to avoid these fees at all cost, but is important to calculate exactly how much you will be saving and see if that is above the fee amount. When it comes to consolidating credit card debt, careful planning and calculation is key.

Though it may be extremely intimidating to be in credit card debt, it is definitely possible to get out. Learning how to consolidate your credit card debt is one of the most helpful ways to escape it.

Credit Card Balance Transfer Promotions With 0 Percent Till 2016 Now Being Offered

Any Balance Transfer Promotions Running With 0% Till 2016 Yet?

A one time salvation for millions of beleaguered credit card holders, the zero percent balance transfer offers soon disappeared with the ups and downs of the credit card industry and economy.

top balance transfer credit card offers in 2014

Some companies are gearing up on great balance transfer promotions, including offering zero percent credit card offers until 2016. One of these companies is Example Four IT Card (0% intro APR on balance transfers for 18 months), which is a great way to reduce your interest expenses and lock in a payment plan advantage for the rest of this year and all of 2016. The time to get a zero percent card and get headed in a better financial position has never been better. Other cards offering great zero percent promotions in 2016 include Example Seven and Example Onegroup (citi simplicity cards).

However, things have changed for the better somewhat as banks and other lending institutions step up the pace once more to get both new customers and recapture past customers with the allure of zero percent credit card balance transfer offers.

Standard Terms and Features

Typically, these offers all follow the same pattern of being an introductory offer for 18 months APR at zero percent. Usually accompanied by an additional 18 months APR period for new purchases, they all revert back to the industry standard APR of 12.99-22.99 percent variable rate basis after the introductory offer of 18 months expires. All things being equal, this would take the period of balance transfers at zero percent clearly up to 2016. Many of the offers advertise no annual fees, no late fees and no penalty fees.

As attractive as these offers are they do have a couple of sticking points for many card users–an excellent credit rating and balance transfer fees of either $5 or 3% of the amount of each transfer.

Exceptions Do Exist

Despite many of the leading credit card issuers offering the same terms for the same period duration, there are variations offered by other companies. Some offer terms for zero percent balance transfers and purchases anywhere from four months, six months, eight months, 12 months and 14 months upwards. Others count 12 full billing cycles.

Other varying features are the percentage rates charged. Several companies offer a 10.99-22.99 percent spread after the promotional period expires. Few offer lower rates.

Advantages To Using Balance Transfers

Although many card users did a lot of “out of the box” thinking along with their getting out of debt strategy, some still haven’t tapped into the concept. Basically, a customer opens an account with one or two cards offering the appealing zero percent introductory offer. Taking advantage of the non-existent interest payment charges, a person pays off other credit card debt that carries higher interest rates.

Some customers go even further in that they invest the money saved at zero percent and put it into high interest yield money market funds, mutual funds or other investment vehicles.

However, as the old adage goes, the devil is many times in the details and millions of credit card users have had their terms changed on expiration of the introductory period–without they realizing it. Evidently, they never read the new terms printed in the little piece of paper regularly sent to them with their monthly statement. Lending institutions operate from a win-win position and the burden always falls on the card user to look out for his own best interest.