Consolidating credit card balances
This means that simply making the minimum repayments will never be enough to pay off the credit card debt in full.Rising interest rates and mounting credit card debt may prompt many consumers to look for ways to consolidate their credit card bills.
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Anyone with minimum monthly credit card bills that exceed their available incomes may need "a temporary solution to lower their monthly payment right now," Tehan says.
The credit crunch and decline in home values means fewer homeowners can tap into home equity lines of credit (HELOC) loans to consolidate credit card debt.
The introductory interest rate on a balance transfer card may be low, but this is the flip side: A balance transfer card may be worth considering for many people with existing balances on their credit cards, depending on their personal circumstances.
Consolidating credit card debt can lead to lower interest costs and greater simplicity.
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