Cons of consolidating credit card debt
If you find it’s not that easy, you may need to take more drastic measures.
Taking on a roommate or moving to a shared living situation can easily save you hundreds of dollars on housing expenses.
A balance transfer is when you “pay off” one card by transferring the outstanding balance to a different credit card.
If you have a good credit score, you may be able to qualify for a new card that offers a 0% balance transfer in which you pay no interest on the balance for a predetermined period of time.
If you live in a bike-able area with a good public transportation system, or if your significant other has a reliable vehicle, ditching your car can save a ton on gas, maintenance, repairs, insurance premiums, registration, and loan payments.
Remember, it’s only temporary until you’re debt-free.
After the introductory period, which generally lasts between 12 and 21 months, the interest rate reverts to the card’s standard APR.
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To get your debts paid down faster, look for ways to decrease the interest rates on your cards.
To get your business, many credit card companies offer balance transfers on new credit cards.
NASDAQ reports that consumers pay an average of 15% on credit card debt, and those with a revolving balance tend to pay even higher rates.
Many Americans have revolving balances spread across several cards, making the repayment process even more hectic and difficult.