Friday, September 17, 2010

Is it wise to avail credit card balance transfer offer?

Well, before I have the need to know the answer to credit card debt consolidation, I was able to clear all my credit card balances. Thanks to my sister-in-law who helped me out with debt free loan, I paid back the credit card dues in a lump sum.

‘Credit card debt consolidation’ means just that-consolidation of balance on different credit cards we have and bring under one (sometimes two) credit card.

Many credit card holders would periodically receive an offer letter from the credit card issuing banks giving you can option to transfer the existing balance on your other credit cards. If you avail this offer, you are a given an interest period for this transferred balance to pay back.

This is called debt consolidation.

If you were shrewd and good at basic mathematics, you would utilize this opportunity to reduce your credit card dues. My husband has done this in the past.

If the credit card issuing companies are shrewd, we should match their wisdom with ours.

He does not have a credit card now; says he is a cash party now.

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