A Credit Card Debt Consolidation Can Save You Big on Your APR

‘Credit card debt consolidation’ seems to be the most talked-about term in the world of credit cards. While credit cards are very useful and convenient item, many people have grown to rely on them so much that they deem them a necessity. It seems though, that with every good thing you have a bad side affects too. The reality of credit cards is that using them poorly and getting in debt is really bad, but many people believe that a simple credit card debt consolidation is the fix for this problem.

For the most part, anybody who has read any news on the topic of credit card debt party knows what a credit card debt consolidation consists of. But for the sake of those who have been hiding under a rock, any credit card debt consolidation is the process of putting all of your credit card debt from high interest cards onto a card with a low interest rate.

Thus, the main benefit of credit card debt consolidation is realized in terms of APR reduction (and hence reduction in credit card debt growth rate). This is often said to be the most important benefit as well as the only true benefit from putting your credit card debt on a lower interest card. I am going to show you though that there are some other benefits to this as well. You have probably seen many of these benefits publicized by suppliers of credit cards, but others you haven’t:

1.    Initial APR: As I talked about previously, the benefit of lower APR is probably one of the biggest. In a lot of instances credit card companies will use this consolidation tactic to attract you into getting their card, and they will offer you a 0% interest rate you for a term of 6 to 9 months.
2.    Standard APR: Your long-term annual percentage rate is another benefit that you are going to gain as it will be calculated at a lower rate as well. It is not a given that every credit card suppliers going to provide you with a lower standard APR for your consolidation, but there are many suppliers that provide the use programs with low APR’s. These programs for debt consolidation normally offer you a trade-off between the standard APR rates and the initial rates.
3.    0% on purchases: You will find this benefit quite often on credit card debt consolidation offers. The 0% interest (or some lower percentage) on purchases is offered as an incentive for credit card debt consolidation. These aren’t never a full-time benefit though, only for a limited time.
4.    Easy management: This credit card debt consolidation benefit is not as discussed as others. However, one benefit of credit card debt consolidation (from multiple to single credit card) is the fact that you need to track and manage a lesser number of credit cards.
5.    Other benefits: Some of the other benefits that you might receive any consolidation include rebates, discounts, and reward points, this is particularly true if you move into a cobranded card.

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