Monday, November 15, 2010

Debt Consolidation

If you have credit cards, you may see debt consolidation offers right and left.  These debt consolidation offers usually involve you moving all of your credit card debt to a new or existing credit card so that you have one balance.  Additionally, doing this debt consolidation may qualify you for an introductory low APR, which is designed to be lower than the APR's of your other cards.

Be careful if you are considering this.  Many times, these low introductory APR's have strict conditions and small windows of benefit.  It's common for the introductory APR to be around 2% and then jump up to 20% without any advance notice.  If you're going to do a debt consolidation on a credit card, be wary of the potential consequences if you don't watch your account closely enough.