You can use a new credit card to help pay off some of the debt you have from other credit cards and other sources. As long as you can get another credit card, you have a great tool at your disposal to quickly lower your monthly payments. With a new credit card, here's how to do it.
Look for interest rates of 0% APR
Here is one thing you can do to cut down on the amount of interest you pay on your credit cards every month. Get a credit card with no interest for a year or more. Some cards will only let you do this for up to three months, while others will let you do it for up to 15 months. By putting your credit card debt on the new card, you can reduce your interest payments to zero, as long as the introductory offer of 0% interest stays in place.
Transfers of Money
This is the feature that lets you move your credit card debt from one card to another. Be wary of a card with balance transfer fees, especially if you are trying to pay down your debt. You don't need to pay another 3 or 4 percent interest on the transfer. Balance transfer fees are common on credit cards, but many do not have them. During the time of the introductory offer, some credit cards will charge a certain amount of interest on balance transfers but not on other purchases. You should know, though, that when you get your new card, you might have to write down all the transfers you want to put on it and might not be able to add anything else. Look for a credit card that gives you more freedom.
Make Big Payments
A credit card is a great tool that makes your life a little easier because you don't have to carry cash. But if you have to pay a late fee every time you're late and high interest every month, it's not as helpful as it should be. Paying as much as you can each month will help you get out of debt faster. With an interest rate of 0% APR, you should be able to make larger payments and pay off the loan quickly, as long as you make your payments on time.
No New Shopping
You can really benefit from consolidating your credit card debt once you get it low enough that you can pay off each month's transactions every month. Even though this goal may be far away for some, everyone should still try to reach it. This means you should stop buying things you don't really need until you can use your credit cards the way they should be used. Instead of thinking of the card as a way to "buy as much as you can and max out the card as fast as you can," think of it as a way to better handle your money.
Rebates And Rewards
To save even more money, you should also use the card to buy things like gas, prescriptions, and food that you buy often. With some credit cards, you can save anywhere from 1% to 3%. This is given to you as a rebate or reward, which is money taken off of what you owe each month.
Some of these options will only work if you stop buying things you don't need. If you pay off your credit card debt every month and pay as much as you can to get it down to a comfortable level, these tips will help you consolidate your debt from other credit cards. Then you can start saving for those other things you want.
