Credit card consolidating

Consolidating debt involves combining all of your current debt into one new potentially low-interest loan.This will ensure that you only have one repayment to make instead of the several you were dealing with.

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Credit card consolidating

Just bear in mind that this is really only an option if you intend to pay off the card within the honeymoon period, otherwise you’ll end up paying hefty interest rates which will increase your debt.

As mentioned frequently among au articles and guides, balance transfers are the epitome of cheap and effective debt consolidation.

There are plenty more balance transfer cards on offer which you can compare.

If you’re unfamiliar with the balance transfer concept, or want to find out how you can avoid common pitfalls and ‘traps’ associated with them, see our balance transfer guide.

Since a personal loan can be fixed at a rate of around 13%, you may want to transfer your higher credit card debts into your personal loan and repay at it’s own rate.

Contact your financial provider to find out if balance transfers are available on your personal loan.Compare the best personal loans if you’re interested in pursuing this method*.All offer their own benefits and have their own risks, but ultimately get you to the same goal of one easy low-interest repayment.There are several ways with which you can consolidate your debts and we will look at them in this article.By understanding how debt consolidation works you will be able to make an informed decision about your financial future.Credit card balance transfers allow you to choose a reduced interest rate credit card for periods of 6-months up to 24 months.

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