Credit card debt is a problem for millions of Americans (about 189 million, to be exact). And for many, it’s hard to get out of.
With an average of $8,398 in balances per household, credit card debt can pose a mounting challenge. Making minimum payments can keep you afloat, but as interest adds up, tackling that debt — and eventually getting out of it — start to seem more difficult than ever.
Credit card refinancing vs. debt consolidation
If you’re dealing with high credit card debt, there are two strategies that can help you: credit card refinancing and debt consolidation.
Credit card refinancing
“’Credit card refinancing’ is a fancy way of saying ‘balance transfer offer,’” said Howard Dvorkin, a certified public accountant, and chairman at Debt.com.
Put simply, it’s when you use a new card — one with a low- or 0% interest rate for six to 18 months — to pay off the balances of all your other cards. This allows you to reduce your debts without racking up extra interest along the way. If you are looking for a zero percent credit card, head to Credible to compare cards and see what they can do for you.
According to llian Georgiev, CEO and co-founder of personal finance app Charlie, the benefits of this move can be huge.
“All the money you’re paying each month is getting applied directly to the principal instead of getting split between the debt you owe and interest,” Georgiev said. “It’s a magic bullet when it comes to debt repayment.”
Credible can help you find the right credit card for you. Choose zero percent credit cards and get a breakdown of the annual fee…….Read More>>