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The temptations presented by credit cards are many and while using different cards to tide over tight situations may provide temporary relief in the long run you will find that most of your available funds go towards paying credit card interests and that too at different rates.
Once in the deep waters of debt there are just two options, to swim to safety
steadily or to drown. Consider consolidating credit card debt and to stop
utilizing your cards until you are out of trouble. You must also consider ways
in which to curtail expenses and find ways of increasing your income.
Getting out of a debt trap has certain important rules or steps:
1. Once you have worked out a plan carry
out credit card balance transfers taking into consideration overlap periods and interest
calculation cycles for each card. Avoid paying more interest than you need to by notifying
the banks/institutions well in advance so that they have enough time to post or carry out
your instructions.
2. Utilize offers like 0 balance credit card plans and apply well before the scheme expires.
3. Once you have chosen a credit card where you intend to transfer all balances, check
through their offer carefully. Many cards have hidden charges in fine print which you
may overlook. Make sure that the 0 APR is exactly what it is.
4. Choose a card to make a transfer balance with care. Do a comparison shopping for APR.
And try and select just one low interest card to consolidate debt. If you are careful
you will save a lot of money.
5. Verify the efficacy and dependability of the card. Always check carefully never jump
into a commitment without being sure you have made the right choice.
6. Keep track of when the 0% interest period finishes and try and pay back the amount
owed within the period. Otherwise scout around for another scheme and transfer balance
owed well before the last date. While some cards offer a 0% rate for six months others
make the scheme valid for a year after which the interest rate is raised once again to
market levels.
7. A balance transfer helps you avoid paying high and varied interest rates. So you must
sit down and figure out what the interest rates you are paying are and how much is owed
to different cards. The consolidation must benefit you and you must avoid paying out
large amounts as transaction fees.
8. Always try and move as much as you can. Ask the low interest or zero interest credit
card company what is the maximum amount they will accept. To save money you need to
transfer as much debt as possible from a high interest to a low one.
The primary focus must be to get out of debt. And if you are clever you will find a credit
card that offers you the greatest advantage. Remember if you pay 0 % interest then even
the amount you would have otherwise paid as interest can be adjusted against the
principal owed.
However while you are undertaking debt consolidation you must lock away all cards and
not run up additional debt. To turn your life around you need to curtail expenses and
live a budgeted life. A few tips: take away credit cards from all family members; cancel
as many cards as you can; when you go to a mall or shopping district leave your cards at
home and take along a friend who will discourage temptation and impulse buying.When
tempted think do I really need x, y, or z? When am I likely to use this. If the answer
is not in the near future don’t buy it. Discipline is the only path to living a
debt free exisitence.
About the Author : Aaron Brooks is a freelance writer for
Free Credit Card, the premier website to find
information on Credit Card including topics on credit card market, credit cards, business
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