Many people have lost control of credit card payments and have fallen behind in their payments. Rather than going bankrupt, they discovered that transferring their higher interest rate card balances to the lowest interest rates allowed them to save a lot of money. 39, money every month on interest payments. This helps them to have money for other bills or to repay the principal of the low interest rate card. It is wise to control this debt, but if you do not manage these two main problems, you can find yourself where you are, if not worse.
The first problem is that many people get a new low-interest credit card and apply their other cards. It's good, but you have to do your homework. Make sure that the low interest rate is not a launch offer likely to increase in the future. Then all the money you originally saved on monthly interest has disappeared, and it could even be higher than your initial annual rates! It's not good at all, so be sure to read all the details and call the bank that issues it if you're unsure.
The second problem has more to do with the discipline you are showing with higher interest cards for which you are out of balance. You may be tempted to recharge them again, especially if you need something you think is important. If you think you have problems with these higher interest cards, cut them out and cancel them. There is no point in getting into more debt than the one you were trying to control.
By following these two tips, you will find that credit card consolidation can be a valuable tool for your debt reduction strategies.