Want to roll all of your high interest debts into one loan with a lower interest rate? Fortunately, you may have the opportunity to do just that. Often, you can make all your debts more manageable, and save yourself cash in the process, with a consolidation loan – which is something that can benefit almost anyone struggling to keep on top of multiple repayments.
Why consolidate your debts
In most cases, you’ll have the chance to move all of your credit card debt onto one balance transfer credit card, which can make your life easier in several ways. However, you may be unsure of why using a credit card to pay off the money you owe can be a good idea.
Generally, when done correctly, this can:
- Help to lower your monthly payments and reduce interest rates
- Make your debts more manageable and easier to keep track of
- Help you to avoid being late on your repayments (and penalty APRs)
How can a 0% APR balance transfer card help?
Credit cards with a low APR are often made to help individuals to consolidate the high interest debts they have on their credit cards to a card with a lower interest rate. In many cases, a 0% APR intro rate will allow you to avoid paying any interest during the introductory period of your loan – which tends to range from 6 to 18 months.
How much can a balance transfer cost?
Unfortunately, you’ll often have to pay a fee in order to consolidate your debts onto a new card – so how much are you looking to pay?
In most cases, this can depend on the transfer fee that your credit card charges you – although the average transfer rate is around 3% of the consolidated debt. Luckily, with such a low percentage, this cost tends to be quite low. Even if you were to consolidate $10,000 in credit card debts, you’d likely be charged around $300 – and to save cash on your loan and make it easier to manage, this might be a worthy investment.
Best cards to consolidate debt
If you hope to use a balance transfer card to manage your debts easier, you may want to take a look at some of the best cards in the country to help you to pay off and be free of your debts.
At the moment, one of the most popular balance transfer credit cards is Chase Slate – and for good reason. In fact, there are several things that make the Chase Slate card a great choice; from the no balance transfer fee (a bonus for most individuals), no annual fee, and more.
Citi balance transfer credit cards
There are quite a few good Citi transfer cards available – all of which have their own advantages. If you want to make sure you get the very best from your debt consolidation balance transfer cards, you may want to check out the:
- Citi Double Cash Card (main benefits: 18 months 0% APR, no annual fees, and 2% cash back on all purchases)
- Citi Diamond Preferred Card (main benefits: 21 months, 24/7 access to a Citi concierge, no annual fees, and more)
- Citi Simplicity Card (main benefits: 21 months, no annual fees, and no late fees)
There are quite a few benefits that the Discover it card can offer, such as a 0% APR intro rate for the first 18 months, free access to FICO scores, no annual fees, and more. While there are a number of benefits to this card, there are a few drawbacks as well, like the 3% transfer fee.