2 ways to consolidate your credit card debts


In the last post about ways to get out of debt, I mentioned using debt consolidation to help you lighten your debt load.

Today, I wanted to go over a couple methods you can use to help lower your interest rates on your credit cards to help you pay off your debts faster.

One way to consolidate your credit card debt is to get a debt consolidation loan and use that to pay off all your credit cards.  You then just have to make one monthly payment.

Most debt consolidation loans are at a lower interest rate than your credit cards.  So you’ll be saving hundreds in interest charges alone each year.

Make sure you shop around for the best rates and lowest fees.

The other method is to get a new credit card that offers a low balance transfer offer with a long balance transfer period.

I have several offers on my credit cards where I am paying 3.99% and 4.99% APR for the life of those offers.

Then you transfer all your higher interest rate credit cards to the new low interest card and again have one monthly payment.

Do your best to pay off the balance while in the introductory period or else you will start paying higher interest charges.

Again, shop around for the best deals.

Credit cards are very competitive these days so shop wisely.  And get on the phone with the banks and ask if they can lower your interest rates.  Don’t be a wimpy negotiator.  Be persistent.

And don’t just try once either.  Make several attempts to get a lower interest rate.

Write a letter, send emails, and make phone calls.  Speak to a manager.

Don’t pay 18% or 22% or higher interest on your credit cards if you don’t have to.  Take the 5-15 minutes to call your bank and work on getting better deals on your cards.

Let me know your thoughts.

-The Credit Blogger