Credit Card debt is a huge problem facing American today. It can be advantageous to consolidate your credit card debt under the right circumstances. Often you can transfer your balances for a “teaser” rate, which is much lower than prevailing interest rates. The “teaser” rates are usually either at 0% to a very low interest rate. The duration of this rate is typically from 6 months to 1 year. This would allow you to only have to make one payment each month, which minimizes your chance of having a late fee. But, if you are late with your payment, you will lose the low interest rate.
If you are doing business with only one Credit Card company, you might be able to re-negotiate a lower rate after the introductory rate expires. However, if your credit rating is poor, it might be difficult to obtain a new credit card with a “teaser” rate and the revised interest rate might be higher than you were previously paying.
