![]() While your credit score may currently allow you to open new cards, a perpetual habit of opening new cards to transfer your balance could drive your credit score down. When transferring balances to this type of 0% introductory APR credit card, your goal should be to pay as much of the balance as possible before the introductory period ends and to not make any new charges on this new card.įinally, avoid thinking of continually transferring balances to escape from paying your credit card debt. Understand what your particular balance transfer strategy will cost you before you commit to consolidating your debt through a balance transfer.Ġ% introductory APR credit cards could be a cost-effective way to transfer an existing credit card balance, as they will not charge interest until the introductory period is over. For example, sometimes fees are based on the dollar amount of the balances that you transfer. If you can earn approval for a new credit card that meets both conditions, you will want to ask the card issuer about any fees associated with a balance transfer. If you know your current credit cards' APRs, it should be simple to identify a new credit card that offers both (1) a lower APR and (2) an ability to transfer existing balances. Transferring your balances can be a way to help reduce your interest rates by doing a balance transfer from higher rate credit cards to a lower rate credit card. Ways to consolidate your credit card debtĮmboldened by your knowledge of your finances, you can begin to select the debt consolidation strategy that works best for you. Is your monthly bill total larger than your monthly income or is your income greater than your bills? Use your knowledge of your overall balance to select a credit card debt consolidation solution that fits your situation. Using your minimum credit card payments, add up all your monthly payments and debt (not just credit cards). Know your balance: Can you meet your minimum payments? Once you have all of this, you'll have a clearer understanding of your total expenses and income, and how much credit card debt adds to monthly costs. There are also plenty of budget apps online that are free and easy to use. You can also load this information into an online budgeting tool, such as Chase's Budget, to keep on hand for future reference. And anything else that's a regular monthly payment, like gym memberships and public transport costs.Subscription service payments (such as cable TV and cell phone bills).Loans and insurance: Car loan and insurance, student debt payments and other personal loan or insurance costs.Utilities, like water, gas, heating and electricity, broken down by average monthly balances. ![]() Now, on the debt side, add to your list of credit card balances a collection of your recent monthly and annual bills. Next, collect recent pay stubs to understand your typical monthly income (leaving out any bonuses or tips that you can't depend on each month). Know your budget: Track your income and bills
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