Should I consolidate my debts to a low interest credit card?  

If you are overburdened with a huge amount of unsecured debts, you can undoubtedly go for debt consolidation. With debt consolidation you can consolidate all your unsecured debts under a single affordable monthly payment. Balance transfer is a debt help option where you transfer your high interest balance to a low interest credit card.

This new card will offer you with certain facilities like 0% introductory period which means that this card will not charge you with any interest rate in the introductory period. With 0% interest rate, your monthly payments are considerably lowered and you can pay off your balance comfortably. But there are some things that you should remember before consolidating your debts through the balance transfer method. Read on to know about them.

1. Shop around to compare different offers: Before consolidating your high interest debts into a low interest card, make sure that you shop around and compare various different offers. Various companies will offer you various terms and conditions on your balance transfer card. A particular company may offer you 0% interest rate during the introductory period but the rate may rise suddenly after the completion of the introductory period. You need to watch out for such useful information before committing yourself to a particular card. Your knowledge will help you make your debt help attempt successful.

2. Don’t forget to read the fine print: Always remember that the most valuable information will be written in the fine print. The terms and conditions of the card and how much the interest rate will increase after the introductory period will all be mentioned in the fine print of the card. There are certain transfer fees that are also required to be kept in mind. If you have any doubt regarding any information, ask the credit card company for further explanation.

3. Check whether balance has been transferred: After you have transferred your high interest balance to the low interest card, always make sure that you check with the old credit card company and the new credit card company. Ask for the documents that prove that your balance has been successfully transferred from one card to the other.

4. Don’t go for online balance transfer: Many people commit the most common mistake of transferring their balance online. With online balance transfer most consumers remain unaware of the interest rate change after the introductory period. Moreover, there are many credit card companies who do not allow online balance transfer.

Thus, if you’re intrigued by this debt help option, you can consolidate your debts with a low interest rate card. Just remain careful and informed so that you are able to take a well measured decision while paying off your debts.

Author: Robin Williams