Credit Card Debt Solutions

Posted by Nick Niesen on October 29th, 2010

People are always looking for good credit card debt solutions. Maybe, in consolidation, they have found one. The first step toward effective credit card debt solutions is really to consolidate the debt.

How is Consolidation Helpful for Credit Card Debt Solutions?

Debt consolidation involves bringing all your loans together under one roof so you are only paying one bill each month. This helps with credit card debt solutions in two ways; first, it?s easier to keep track of what you owe as you are only paying one monthly bill; second, consolidation is one of the most effective credit card debt solutions because it will often usually lower your monthly repayments as well as making them easier to keep track of.

How Should You Consolidate Your Credit Card Debts?

Consolidation is becoming one of the most popular credit card debt solutions. But which option should you choose? Should you go with the ad in the local newspaper? Should you hunt down the lowest APR available?

You?ll no doubt have seen countless credit card debt solutions. Each one seems more attractive as credit card companies try to entice you to place your debt with them.

A Word of Warning

The annual percentage rate (APR) that you are quoted in ads and on application forms - and which make this seem like the greatest of all credit card debt solutions - will probably only be a short term offer. 0% APR sounds great when you are looking for credit card debt solutions, but will it look quite so great in six months time when it has escalated beyond the competitors and you are now tied in to this one of many credit card debt solutions?

You need to be careful when choosing between credit card debt solutions. Make sure you find out what is the introductory APR, for how long that offer lasts, and then what the standard APR is that you will be paying for most of the time on your credit card debt solutions.

Don?t Go for the Quick Fix

Introductory APR offers may leave you with an initial feeling of relief as your monthly payments are reduced in these credit card debt solutions. At least that way you might be able to stop your mounting debt, which is why the 0% APR is attractive. However, if you are to find the best option among all the myriad credit card debt solutions, you need to evaluate the standard APR much more closely.

The standard APR is how much interest you will be paying on your credit card debt solutions after the introductory offer expires. You may find that you are in fact paying higher interest on these repayments to compensate the credit card companies for their seemingly generous introductory offer.

It might depend how large your debt is as to which of the credit card debt solutions you go for; if your debt is small, it could be paid off within the introductory period so a low introductory APR would then simply be what you are looking for in terms of credit card debt solutions. If so, you need never worry what the interest rate would rise to after the introductory offer has ended.