Credit cards have become almost an integral part in managing or operating our financial activities as they offer a wide range of benefits. Consequently, Credit Card Debt Consolidation has also become a topic that we are getting increasingly interested in.
To every problem there is a solution. While credit card debts can cause you a lot of troubles and worries, a successful debt consolidation could be your only saviour. It has long been regarded as a ‘cure’ to your debt ‘illnesses’.
From a variety of sources of print or electronic media, you may already have got a clear idea about credit card debt consolidation. For the convenience of all who are relatively new with this term, a plain definition could be useful. Simply put, Credit Card Debt Consolidation is the process of consolidating a number of high APR debts from several credit cards into a simpler, low APR debt of a single card.
What makes credit card debt consolidation so appealing is its ability to minimize the APR and resultant rise of debts. In a debt-ridden miserable life, this single benefit amongst many others makes it stand out unique.
There are many other advantages of credit card debt consolidation. While credit card companies mostly focus the prime benefit of debt consolidation i.e. APR reduction to their clients, following apparently insignificant benefits could be important for you to know:
1. Attractive introductory APR: Since an attractive low APR is the greatest bargain of a debt consolidation, credit card companies capitalize on this feature to draw potential consumers. They do this usually by allowing you to enjoy a 0% APR over an initial period of 6-9 months from the time you sign-up with a debt consolidation program and receive your new card.
2. Long-term Standard APR: This is another attractive offer made by some (not all) debt consolidation providers. These credit card companies, instead of providing an initial 0% APR over long period, offer you a long term low standard APR. As a client of debt consolidation program, you are therefore at your liberty to choose this profitable rate as a good alternative to the initial APR rates.
3. 0% Purchase incentive: Many credit card companies also offer an alluring purchase incentive within a credit card debt consolidation program. The incentive is usually designed to allow you to enjoy a very low or even 0% interest on your purchases. These incentives are normally offered over a short period.
4. Managing finances: Although it may not receive due attention but one striking advantage of credit card debt consolidation is the ease management of personal finances it presents. With a good credit card debt consolidation program, your life becomes more comfortable where you need to manage a single credit card instead of multiple cards in a non-debt consolidation condition.
5. Other gains: Signing-up with a credit card debt consolidation could also be beneficial for you to enjoy a number of discounts, rebates or earn redeemable points. Usually co-branded card providers affix such enticing incentives in their sponsored debt consolidation programs.