melissa rycroft dating ex boyfriend - Definition of consolidating credit card debt

See if it makes sense for you by using a balance transfer calculator. Make a misstep, such as letting payments lag, and your great rate will disappear and in its place will appear the higher "go-to" rate. Some balance transfer credit cards' rules specify that only transferred balances qualify for the lower rate, while new purchases collect interest at the regular, higher APR. To make matters more complicated, you can't tell your card issuer how to apply your payments if you have both a 0 percent balance transfer balance and a new purchase balance at a higher rate on the same card.Some cards do apply the introductory interest rate to new purchases too, but often only for the first six months. According to the Credit CARD Act of 2009, issuers are required to apply any amount in excess of the minimum payment to the debt with the highest interest first. You may think applying for a new balance transfer card when your teaser rate expires is the perfect solution to avoid ever paying interest on your credit card debt.

As you begin to work this system, keep in mind that it’s not easy.

Just like losing weight, losing your debt takes work, but if you genuinely want to slough of that stressful debt, your perseverance can make it happen.

"The only real, solid, definable benefit from a balance transfer is you can save money over the long haul if you pay back the previous amount you owed and you pay it at a lower interest rate, including all your costs," says Mike Sullivan, director of education for Take Charge America, a Phoenix-based nonprofit consumer credit counseling company. If you've maxed out multiple credit cards, can't keep payment dates and minimum payments straight and often accrue late fees, putting all your credit card debt on one card may be a good move.

You'll have just one card to keep track of and one payment to make each month. You may transfer other debts, not just credit cards.

Student debt has reached an all-time high in the U. of late, with an estimated 40 million people now owing an average balance of $29,000, according to credit report company Experian.