Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Personal Finance » Article
 

Changing your credit card can help with debt management




By Martin McAllister

Consumer debt is currently spiralling higher by the week. As various credit card companies, consumer groups and government agencies try to dispense advice to consumers about how to manage their debt, it's important for people to understand that they have a large variety of options available to them when it comes to avoiding a debt-management crisis. One such option that some credit card owners can opt for is to change their credit card provider.

Changing your credit card provider is a sensible option to take if you're struggling to pay off your current credit balance. In fact, many credit card companies offer extremely low - sometimes zero percent - rates on balance transfers. So if you think you can pay off your existing debt within six months - and the zero per cent interest rate is valid for the same period of time - then changing your credit card provider is surely an obvious move to make.

However, it's important to research thoroughly before you take this step: once the initial low or zero per cent interest rate offer has passed, the rising monthly repayments can soon offset any benefit that the introductory interest rate may have given you. Most banks will warn you when the low interest period is over, but it's vital that you maintain your financial sense and keep track of changes in your interest rate.

However, there can also be disadvantages to changing your credit card provider: credit agencies monitor the number of credit cards individuals carry, and you can obtain reports from credit card issuers to gain advice on how to deal with them. However, you may be refused if a particular lender decides you have too much outstanding credit, so take as many precautions as you can when attempting to manage your credit card debt. Make sure that you check your bill for errors every time it arrives - and it's always best to pay the whole balance if you can. Paying the minimum amount (usually only 3 per cent of the total amount) can be a dangerous way to slide into debt.

If you decide to apply for another credit card, it's vital to find out exactly how much credit will be made available to you, and what your rate of interest will be. Credit card issuers occasionally offer deals as well, thereby offering you a lower rate of interest for a longer period of time if you stay with their services. Taking such action can often be more appropriate than taking out a personal loan, although it's important to keep in mind that different financial options should be chosen depending on your personal circumstances.
 
 
About the Author
Many credit card companies offer extremely low - sometimes zero percent - rates on balance transfers.
---
Martin McAllister is an online freelance journalist. He lives in Scotland.

Article Source: http://www.simplysearch4it.com/article/48975.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/48975.html" as shown above and make it hyperlinked.



  Some other articles by Martin McAllister
Debt Collection Agencies : Understanding a growth industry
Consumers in the UK collectively owe in excess of 1 trillion according to recent media reports. Much of this debt ...

Valentine's Day offers everyone a chance to impress their loved ones with a special Valentine's Day gift
As January and February wear on, it's easy to slip into the winter doldrums. After all, with wind and rain lashing at your windows and those dark morning ...

This year, spring into your vacation with fewer crowds and lower costs
Once the winter holidays are over, many of us begin to look forward to summer. After all, the summer months afford the ...

Romance and pasta: a match made in heaven?
With Valentine's Day just around the corner, hopeless romantics all over the world are racking their brains for something spectacular with which to surprise that special person this year. But what ...

Bad credit consumers can still find sources of financial assistance
In the last few years, consumer debt in Britain has been spiralling: from credit card debt to large mortgage burdens, it seems that UK spenders have become a nation of borrowers. A recent article ...

Buy property in Spain to start your retirement in style
Many UK residents will dream of one day retiring in sunny Spain. After all, thousands of people have done so in the past, and thousands more are ...

  
  Recent Articles
Bad Debt Personal Loan low cost finance without debt worries
by Alan Jordan

Three Ways To Harness Your Emotions To Raise Your Credit Score
by Dulce Azogue

Explore Ultimate Destinations with UK Holiday Cash Loans
by Aldrich Chappel

Ebay and State Unclaimed Property
by Nicole Anderson

Becoming Financially Literate
by Bernard Ng

How You Can Pay Yourself First
by Bernard Ng

Easy Automobile Refinance reduce cost of owning a car
by Kevin Clark

Unclaimed Money, $30 Billion and Growing
by Nicole Anderson

What is Unclaimed Inheritance? Am I owed Any?
by Nicole Anderson

Financial Responsibility
by Alwyn Beikoff

Personal Secured Loan UK Source Low Cost Easy Finance
by Aldrich Chappel

Free Online Stock Trading Information Makes Trading Even More Profitable
by David Jenyns