Is consolidating credit card debt a good option?
Well, the answer is often yes, not no. Consolidating credit card debt is often considered to be the first step in eliminating credit card debt. However, even before you take the first step to consolidate credit card debt, you must understand that consolidating credit card debt (or balance transfer) is an action you take to eliminate credit card debt. Consolidating credit card debt is not putting off the problem until later.
In many senses, consolidating credit card debt is indeed a good option. Not only will you get relief from your rapidly growing credit card debt, but you will also get other benefits as well. The offers for consolidating credit card debt are numerous and very attractive indeed. Almost all consolidation credit card debt offers come with an initial low APR period during which the APR is typically 0% (or some low number). In fact, this is one of the main factors that make consolidating credit card debt a very attractive option. In addition to this low APR, the benefits of consolidating credit card debt include no interest on purchases during the first 5 months (or other initial period) of the balance transfer. This is another thing that reduces the rate at which your credit card debt grows. So these are the two most important benefits that credit card providers offer to entice people to consolidate their credit card debt with them. Then there are other benefits, including things like earning extra reward points in the membership rewards program of the credit card you consolidate your credit card debt with. These points can be redeemed for other attractive merchandise/discounts/rewards, etc. Sometimes, the new credit card (i.e. the one you are consolidating credit card debt with) may be a credit card that better matches your current spending needs in terms of credit limit and how you spend your money. For example, the new credit card may be a co-branded card offered by an airline that you have recently begun to travel with more frequently, and consolidating credit card debt onto such a card may provide more benefits than your current credit card, which was created to meet your needs when you applied for your current credit card. The credit card you want to consolidate may give you discount offers.