The Debt Chef - Debt Consolidation Credit Card

Debt Consolidation Credit Card

Do you know what debt consolidation credit card is? Besides being a grammatically incorrect term, it could also be a credit card with a 0% interest rate that you transfer all your high-balance credit cards to in an effort to get them paid off in a more timely manner. Not a bad idea, actually, but there are things to be careful of.

Debt Consolidation Credit Card

When you are looking for a debt consolidation credit card, you want to be sure that the debt consolidation credit card you ultimately choose steers clear annual fees and balance transfer fees. Credit card companies know that people are transferring balances to 0% interest cards to save money, so some are charging balance transfer fees of 3-4%. And annual fees can be anywhere from $20-$40 a year. Then you aren't really saving as much as you think you are by transferring your balances to a debt consolidation credit card. There are cards out there with no annual fee and no balance transfer fees, you just have to look hard to find them and read the fine print.

Speaking of fine print, 0% is often an introductory rate. Some companies only offer 0% for six months, but most offer it for up to a year. But if you miss a payment or have a late payment, the 0% rate can disappear faster than your money when you pay bills each month!

When searching for a debt consolidation credit card, be aware that most credit card companies don't call their cards that. We're using that term on this page, however, because a lot of people type that into search engines when they are looking for either 0% interest credit cards or credit card debt consolidation. Since we need to use the term a few more times on this page, please understand that we know it is grammatically incorrect. As writers, it kills us to have to do it. But also know that for the rest of this page, when you see the term debt consolidation credit card, we mean it as credit card debt consolidation.

Credit Card Debt Consolidation

Now, if you meant to look for information about credit card debt consolidation instead of information about 0% interest credit cards, we can tell you how that works. A debt consolidation credit card program involves negotiation to get your credit card balances and interest rates lowered. Then the new, lower balances are combined and you make one monthly payment to the debt consolidation company, which they distribute among your creditors. Because of the reductions, you can become debt free in about five years.

Hopefully this page has quenched your thirst for debt consolidation credit card knowledge.