Consolidating credit card debt good idea

Whichever one has the highest annual percentage rate (APR), that’s the one that gets the focus of being paid off first (while still making minimum payments on your other cards, of course).

Once that card is entirely paid off, you move on to the one that has the next highest APR, and so on.

These pay-down tips and strategies will help you find out how to pay off your credit card debt.

If you’re in that kind of situation, there’s a good chance your debt will grow faster than you can pay it off.Which is why a consolidation loan can often prove to be a better option: it may allow you to get a lower interest rate, which would save you money over the long-run.This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.You’ll need a good to excellent credit score — above 690 — to qualify for most cards.A consolidation loan can sometimes lower your monthly payment, and that can give you enough breathing room to get back on track.

3) Confusion because of too many bills Another common obstacle to getting out of debt is when the sheer number of bills you receive makes it hard to even keep track of which payment is due on which date. While there are some real benefits to debt consolidation, it’s extremely important that you do your homework and understand there’s a wide range of options when it comes to debt consolidation loans – some are good, some are bad, and some are downright predatory.

The option that best suits you depends on your overall debt load, credit score and history, available cash and other aspects of your financial situation, as well as your self-discipline.

Consolidation works best when your ultimate goal is to become debt-free.

Make a budget to pay off your debt by the end of the introductory period, because any remaining balance after that time will be subject to a regular credit card interest rate.

Most issuers charge a balance transfer fee of around 3%, and some also charge an annual fee.

To attack your debt effectively, use the following strategies.