Credit Card Consolidation Tips

As long as you understand the advantages and disadvantages of your chosen method of credit card consolidation, there's no reason you can't take advantage of some of the great offers on the market. There are options to suit all levels of debt, and with a solid financial plan, you have the best chance of managing your finances successfully.

Of course, there are tips and tricks that can help avoid unexpected costs and prevent you from incurring bad debt or a bad credit rating. While this is by no means a comprehensive list of all the traps consumers face, it should give you an idea of some common pitfalls and problems we have noticed.

It's important to pay attention to terms and conditions on any product or financial commitment you plan to undertake, and if there is any confusion, it's worth contacting the relevant financial institution or even an independent financial advisor or financial counsellor.

Tips For Balance Transfer Credit Cards

Pick a card that corresponds to your level of debt
Pay off balance transfers before using the card (if you need an emergency use credit card, use another card or consider a Visa debit or MasterCard debit card if controlling spending is a problem for you)
If you plan to use the card after you pay off your balance transfer, make sure it still represents great value. If not shop around and compare credit cards on the market
Read the fine print - it should be easy to understand. If not, contact the financial institution or go elsewhere
Be aware that balance transfers are usually paid off first, which means any purchases hang around earning interest
Watch the interest rates that balance transfers revert to once the introductory period is finished. Sometimes this is the more expensive cash advance rate - a good reason to pay balance transfers off quickly
When looking to consolidate credit cards, try to make certain you can balance transfer the full amount or close to it. Otherwise, you may not find it cost effective
Check the number of balance transfers you can perform under the special conditions. In some cases there may be a limit on the balance transfers that attract the special rate
Check the date the balance transfer special terms start. Is it at the account opening or the date of the balance transfer
Check for balance transfer fees and charges
Make repayments on time - this may affect your special balance transfer rate, and at least it will affect your credit rating
Don't plan to swap balance transfer cards too much. This could affect your credit rating negatively

Tips For Managing Credit Card Debt

Consider a balance transfer credit card. You can save on interest rates, fees and make one repayment a month
Considering throwing away old cards you have just paid off. Otherwise the temptation to take on more debt may be too much
Come up with a payment plan and a financial budget you can realistically follow
Assess if you are living below your means, and consider an emergency savings account
Make more than the minimum repayments to your credit card account
If discipline is a problem, consider a personal loan
If you're failing to make repayments, consider negotiating with your credit card company. They may be able to reduce rates or find another way to help you out