Reduce your debt with credit card consolidations

Reduce your debt with credit card consolidations

26 June 2008

With credit card debt on the rise in Australia, more and more people are opting for credit card consolidations to get out of credit card debt. Credit card consolidations occur when you place all your debt onto one credit card - usually with a balance transfer credit card.

Many banks offer lower interest rates for credit card consolidations during the introductory period. It's important to pay off as much of your debt as you possibly can during this period. After the introductory period ends, the interest rate can go up dramatically. Check with your bank what the interest rate will be when the introductory period ends.

Try to pay more than the minimum monthly payment with your credit card consolidations. If you only pay this amount, it will take a lot longer to pay off your debt because the interest will keep increasing. Increasing the amount you pay each month will shorten the time you spend paying off your debt and lessen the interest.

For more hints on reducing debt, take a look at our page on reducing credit card debt. Learn more about balance transfers with our balance transfer credit cards page.

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