Pay The Loan

Using a credit card to consolidate debt sounds a bit odd, doesn't it? On the surface, yes. However, when you explore what a debt consolidation card can do for you, you'll think otherwise. Let's explore how a debt consolidation credit card can help you conquer debt and live a life free from worry.

If you owe money to several creditors, you may feel as if you can never get ahead. In most cases your feelings are valid, especially if you do not have a plan in place to overcome your debt.

True, a debt consolidation loan from your bank is one option to pulling things together but your bank will charge you an application fee and probably high interest rate for the privilege of securing a debt consolidation loan.

On the other hand, what if applying for a new credit card could do the same thing for you? No application fee and a lower interest rate too. Is this possible? Yes it is!

A debt consolidation credit card is a regular card used by you for the sole purpose of tying together your debt under one account. For example, your debt consolidation card could combine:

The $673 you owe to J.C. Penney's The $550 you owe your child's orthodontist The $1318 you owe on your current VISA The $2299 you owe on your current MasterCard The $1515 remaining payments you owe on your car

So, how would you pay these debts off? By securing a new credit card with a balance transfer option. When you apply for such a card you will be asked if there are any debts you would like to have transferred to the new account. Check yes and list at least three debts and their account numbers [request two more accounts and your wish could be met]. Once your credit card account has been approved your new card will pay off the outstanding balances on the other accounts. Soon, you'll have one manageable debt at what should be a low fixed rate until the debt consolidation is paid off. Simply keep making payments on your current debt until you receive notification from the new card that balances have been paid off.

In some cases you will have to pay a balance transfer fee but if your current interest rate on balances averages 18% and your debt consolidation credit card is 6% then it is obvious that the new card is worth it to you.