You know the benefits to having multiple credit cards, however, at this time you have too much debt on multiple cards and the interest rate is too high on many of them. If the technique is used properly, consolidating credit card bills onto one low rate credit card can make managing your debt infinitely easier and more cost affective.
Credit card companies often have promotions such as a low introductory rate or 0% financing for new customers willing to transfer balances from other credit cards onto theirs. Consumers can use those strategies to take advantage of low cost or free loans in order to improve their debt situation. If you find one low-rate card and transfer the balances, it is now up to you to make the system work for you.
The first step is to mark down the due date for the final payment in order to take advantage of the lowered interest rates. Typically you should have 12 months to pay down the new balance before the rate adjusts. Then, schedule online bill payments through your bank and if you can, divide the balance into 12 equal payments and work at paying the total balance by the end of the promotion. This move can help to lower the interest rate, and can also help you pay down your balances more quickly as more of your monthly payment will apply to the principal balance instead of the interest and finance charges.
If you try to consolidate credit card bills onto one low rate card, make timely and large payments, and reduce your spending, this is a great way to do it. If, however, after consolidation you use one of your cleared up cards to shop more, you can end up in worse debt than you started with and cause serious damage to your financial health.
