Credit card consolidation can save you a considerable amount of money, especially if you're transferring the balances from a high APR (annual percentage rate) credit card to lower APR credit cards, or better yet, one of the many credit cards that offer zero percentage APR for balance transfers.
Credit card consolidation loans are a great way to relieve stress, financial hardship and damaged credit files. Here at a secured loan 4 you we can help you consolidate those credit cards into one lower and much easier repayment. Using a credit card consolidation loan you can pay off your outstanding credit card balances and repay the credit card consolidation loan as a single item for repayment, the interest rate on the secured loan for credit card consolidation is usually lower then credit card rates.
Did you know the credit card debt figures in July 2005 stood at £55.87billion. That is enormous. UK is a standing witness to the growing incidence of multiple card holding. 6 out of 10 people have multiple credit cards. According to Association of Payment Clearing Services two thirds of the adult population in the UK is a credit card holder. Guess what, you are part of it. The average interest rates on credit cards is 16%. This just goes to show why so many are people are in debt, consider loan interest rates can start as low as 5%. Credit card consolidation is an intelligent step towards finally getting that debt off you.
There are five very distinct reasons why credit card consolidation loans may very well be an excellent choice for you.
The first, as mentioned above, is because your current credit card or cards are costing you far too much in annual fees or APR. It could be that the card you use for credit card consolidation may not offer a low APR for a full term but rather a short term zero or low APR percentage for any balance transfer. Credit card consolidation is usually carried out by taking out another credit card with a low rate for a longer period. This creates more debt over time and can begin a string of problems. With a secured loan you could consolidate debt and cut the interest rate by up to 10%.
Annual fees can be a strong incentive for credit card consolidation as well. These can add up, especially if you have multiple credit cards. While many cards have annual fees of around £20 or £25, some can carry an annual fee as high as £250. Keep in mind, however, that pursuing credit card consolidation by transferring to a card that has no annual fee is only advantageous if you're going to use that card for the year. If, however, you're looking at a card whose introductory rate is six months, after which the APR skyrockets, that low or nonexistent annual rate will cause downfalls and more outstanding debt.
Your other credit card consolidation option may well be a personal loan or a secured loan. While it might seem that using a loan as a resource for credit card consolidation is a little risky, the fact is that your monthly loan payment will be much easier to achieve than the use of one credit card. Why? Because you will not have the temptation or need to use that credit card and rack up even heftier credit card debt.
If your credit card payments have been continually late they've probably affected your credit. Credit card consolidation may be a good way to reduce the debt and improve your credit rating.
One last reason for pursuing credit card consolidation is to make a little money from it - right up front. There is so much competition among the various credit card companies that some literally offer to give you money back immediately if you'll transfer your credit card balances to them. They do this by saying that they're going to reduce that debt.
Clients should be aware that the facility to change from one credit card to another at an initial nil rate of interest may come to an end and clients should always be aware that it may be in their interests to consider a UK secured loan on their principle residents as a more efficient way of consolidating short term debts which are normally at a premium interest rate. The facility too spread the repayment over a longer period which could be up to 30 years would in most circumstances mean that clients would not have the same repayment each month on their outstanding debts. When making this decision clients should always refer to an independant financial adviser who would guide them through the advantages and disadvantages of a UK secured loan against an unsecured credit card loan.
