We know that it’s lovely to consolidate credit card debt (at least that is what they keep hearing from everyone). In fact, the first step towards addressing the issue of credit card debt is to consolidate credit card debt. Now, what do you do to consolidate credit card debt? Ought to you go with that pretty advertisement in the newspaper that says ‘…the lowest APR in the town is available here’?
The first thing, , is to keep your eyes & ears open. There’s always various offers available for you to select from. The credit card suppliers keep coming with new & more pretty offers asking you to consolidate credit card debt with them. However, you must note that the APR quoted in bold, e.g. 0% APR, is applicable only for a short term (3-9 months). The long term (or the standard) APR is different. So, when you go looking for a credit card to consolidate credit card debt, you must be keenly looking for these 3 things (in terms of APR) – introductory APR, introductory APR period & the standard APR. Let’s see how each one is important.
Introductory APR is probably the most pretty thing to look for when you are looking to consolidate credit card debt. In the event you consolidate credit card debt to a card that has a low introductory APR e.g. 0%, the first thing you get is a breather/relief in terms of the rate at which your credit card debt has been growing. Based on how long that 0% APR period is (usually you will look to consolidate credit card debt with a credit card supplier who offers 0% preliminary APR), you will at least be able to temporarily break the growth rate of your credit card debt. More the introductory period, the better it is. However, you ought to not ignore the standard APR when you consolidate credit card debt. This is the rate of interest that will be applied to your balance after the expiry of the introductory low APR period that was given to lure you to consolidate credit card debt with that credit card supplier.
If the standard APR is high & you know that you won’t be able to clear off the whole credit card debt in the work of the low APR period, that credit card is probably not the best for you to consolidate credit card debt to. However, in the event you think that it is possible for you to to clear off the whole credit card debt in the work of that period, you can make some compromises on the standard APR of the credit card to which you consolidate credit card debt.
The card that synchronizes together with your current & future financial position (& needs), is the one you ought to consolidate credit card debt to.
