subject: Consolidating Debts With Low Interest Credit Cards – Does It Make Sense For You? [print this page] Debt can make consumers rather desperate in finding help. Credit companies tend to prey on this fact, and offer enticing low rate credit cards in exchange for a consumer's business. The truth behind this action, however, is that these credit cards can create more debt than they seek to solve. The trick is to weigh the benefits, and call credit companies out on their tricks.
Obtaining a 0% interest rate credit card is easier than one might think. It can be as easy as having a mailing address, where credit card companies will very commonly send such offers to hundreds of thousands of possible applicants across the nation. While this can benefit consumers, it will be more likely to do harm to those who have vast amounts of debt as the low interest rates will commonly be subject to change.
Benefiting from a low rate credit card isn't impossible, it is just unlikely. As long as any debts can be paid before the high interest rates kick in, the consumer can benefit from the offer. But thanks to hidden fees and expenses, it isn't always so simple to do. Negotiation longer terms and taking out hidden fees can help give consumers better chances, but this takes careful planning and good negotiation skills.
Above all else, the borrower that is seeking to move their debts to a new creditor will need to review the fine print of a contract. Read every clause, guideline, and rule so as to eliminate the possibility of any hidden fees and tricks or acts of deception. This may require the need of one who is well versed in contractual agreements, or a financial consultant.
Those who think they can cheat the credit companies are wrong. It may seem like a good idea to switch to a low interest credit card, then leave for another offer from a different company, but this can have negative effects on a borrower's credit score. Anyone who opens multiple credit card accounts and closes them in short periods will be seen as untrustworthy- and this can hurt a consumer much more in the long run.
Going for a low rate or 0% rate credit card isn't a bad idea- it just takes responsibility for it to work correctly. There are too many factors, rules, and regulations to decipher for most citizens to make an educated decision. If one still wants to go through with the plan, it is highly recommended that the consumer make use of a financial consultant.
Final Thoughts
Financial issues are hardly ever made better by constantly switching plans and rates. Switching from one credit card company to another holds true to this statement, since most applicants who qualify won't be able to pay their debts back in time before higher interest rates start to take effect. In addition to hidden rates and fees, there are service agreements to be signed. In the end, the creditors always come out on top- and a "quick fix" is often not worth it.
Consolidating Debts With Low Interest Credit Cards Does It Make Sense For You?
