Benefits of credit card debt consolidation
“Credit card debt consolidation” seems to be the most concerned term in the credit card industry. Credit cards are indeed very useful and convenient for us. We think credit cards are a necessity. But everything is good, and you also have bad ones. In the world of credit cards, “credit card debt” is evil, and “credit card debt consolidation” is often regarded as a cure for credit card debt.
Anyone who has read a newspaper article on the subject of “credit card debt” knows what credit card debt consolidation is. But for the benefit of others, credit card debt consolidation is simply the process of consolidating your debts on different high annual interest credit cards into a low annual interest credit card. As a result, the main benefit of credit card debt consolidation in reducing APR (and thus the growth rate of credit card debt) is realized. This is touted as the main benefit (and sometimes the only benefit) of credit card debt consolidation. However, consolidating credit card debt has other benefits. Some of the benefits of credit card debt consolidation are widely advertised by credit card providers, some are less:
1. Initial APR: As mentioned above, a lower APR is the biggest benefit of integrating credit card debt. Since credit card debt consolidation is used by credit card providers as a tool to attract consumers, they usually offer 0% annual interest rates within the first 6-9 months after joining the debt consolidation program, that is, the first few months after you get the debt consolidation New credit card of the month.
2. Standard annual interest rate: The lower standard annual interest rate (ie, long-term annual interest rate) is another major benefit of integrating credit card debt. Although not all credit card providers offer lower standard credit card debt consolidation APR, some designed credit card consolidation plans have good standard APR. These credit card debt consolidation plans provide a trade-off between initial and standard annual percentage rates.
3. 0% purchase: This is another common benefit of credit card debt consolidation. The 0% interest (or a lower percentage) on purchases is used as an incentive to consolidate credit card debt. Similarly, this credit card debt consolidation benefit is only effective in the short term.
4. Ease of management: The benefits of integrating credit card debt have not been discussed like others. However, one benefit of credit card debt consolidation (from multiple credit cards to a single credit card) is that you have fewer credit cards to track and manage.
5. Additional benefits: Combining credit card debt can bring you additional benefits in terms of rebates, rebates, and bonus points (especially if you switch to a co-branded card as part of debt consolidation).