How To Reduce Your Debts By Consolidating High Interest Credit Cards
Consolidating high interest credit cards debt can be tricky, and many casual users do not understand the basic principle behind this scheme, let alone are willing to dive into the details of how this mechanism work. It may sound complicated at first, and you may feel lazy going into the trouble of switching to another credit card company or you are just afraid that making changes will eventually make your financial situation even worth. This is a common misconception, however, when used wisely, balance transfers or debt consolidation loans can be a great way to get out of debt for good. Think about consolidating your debts with a so-called “consolidation loan” or moving your credit card balances to another low rate credit card. It should go without saying that you need to check, and then double check again the conditions and the terms of any new credit card you are considering, and if there are any hidden fees as well as the overall interests. You can reduce your dept, but only if you do your homework and evaluate every possible option in-depth. The first step towards financial freedom should be to consolidate your current credit cards to a lower interest rate balance transfer credit card if you can qualify, ideally one for at least 12 months, the Chase by Slate is a great offer if you can qualify!
Unfortunately, debt consolidation loans do not help the biggest part of the population to thrive financially. I believe the cause of this phenomena is that when you obtain a debt consolidation loan, you don’t automatically change your spending habits, which caused the debt accumulation in the first place. In other words, If you used to spend more than you earn, consolidating your debt may waive the pressure for a short period of time, but unless you change your attitude towards finances and your spending habits, you will soon find yourself again in trouble. Always create a budget you can follow strictly. Although you may keep re-consolidating your debt, this will get you in a never ending loop of pressure.
The bottom line is, if your current credit card company has a high interest rate, which sabotages you financially, go over possible offers on the markets, and see which credit cards offer 0% transfer rate, and which bank can offer you to consolidate your debt on terms that will meet your needs. Do keep in mind that even zero percent credit cards are only offering low or no interest rte for a limited period of time, which can help you balance your financial situation by “buying time”, but won’t solve the problem in the long run unless, as we said already, you change your spending habits. It’s also crucial to set up down-to-earth goals for liquidating your high interest credit cards as well as other debt.
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