TIPS TO CONSOLIDATE YOUR CREDIT CARDS

First of all we need to understand that a credit card is a facility provided by banks and financial institutions. If we take charge and manage our financial resources in a better way we would be able to enjoy the benefits of credit cards, otherwise it can become a burden. There are various ways to consolidate the credit card debts and I would like to tell you some easy steps which you can follow to remove credit card debts.   

INTEREST RATES(APR):    Credit card consolidation is the method of consolidating all the debts we hold on different credit cards which contains higher annual percentage rate(APR) to a single card which has lower or 0% APR. Initial lower APR or 0% APR is the best tool for credit card providers to attract customers. Generally credit card providers provide 0% APR on balance transfer for first 6 to 10 months and after that they start charging interest rates. So the best way is to maintain a diary for credit cards which you are using. You should write the details of the credit cards which you are using. It should include all the interest rates of credit card, minimum payments and the last date for paying the payments. You should also write the annual fees of the credit cards so that you would be able to know that on which credit card you have to pay more attention. With the help of this you would be able to make an arrangement to consolidate all the credit card debts. It would be advisable to transfer all the outstanding balances to one credit card which has lower or 0%APR. You should always check the interest rate after the period of 0% on balance transfers because after the free period if the interest rate is more in comparison to the present so you will pay more. If you will calculate only these things you would surely be able to manage your credit cards in a better way.

ANNUAL FEE: It is not uncommon that people use different credit cards. However do not forget to check the annual fee on the card because if we add the entire annual fees amount which we are paying on different credit cards, it can make a big amount. Generally the annual fees on credit cards are in between $18 to $25 dollars. Still it can go up to $200 dollars in some cases. Credit card consolidation is able to remove most of the annual fees which you might be paying on different credit cards. You should keep in mind that if you are planning to use credit card consolidation program by transferring to that card which does not have any annual fee so it will give you benefits only if you continue with that card for at least one year. If the card gives you an offer which runs less than a year so whatever benefits you might have acquired will be vanished. The only reason would be the higher interest rates.

OTHER VARIOUS BENEFITS: Many credit card providers provide 0% on purchases. You can use those credit cards for purchases if not for balance transfer. Moreover you can check various types of other benefits like different reward points, discount etc. It can help you to manage your budget.

So just communicate with your family members that how you should manage your home budget so that you can achieve your financial goals. You should involve your kids also in this discussion. They will not only be grateful for your openness with them, it will also give them a certain maturity level so that they can plan their budget in future. 

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