Consolidating credit card balances
Add in mortgage payments and student loans – plus a cost of living that's outpacing income growth – and it's no wonder that the average American is looking for credit card debt relief.Often, credit card debt is spread across several different cards, leading to multiple statements and payments.You may be able to transfer multiple credit card balances to one credit card, provided you don't exceed the available credit on the consolidating card. To learn more about balance transfers, read How to Know When a Balance Transfer Could Be a Smart Move.Credit card issuers occasionally offer low, but temporary, balance transfer interest rates.A borrower with a strong credit history and ability to repay – and valuable collateral – is more likely to earn the most favorable interest rate terms.Learn more about financial jargon by reading a Glossary of Financial Terms.Read the offer terms carefully before you agree or apply.Not all applicants will get approved for the same interest rates.
This sometimes results in savings that may help a responsible borrower pay back credit card debt faster.
For example, if you used your car as collateral but don't pay the loan back as promised, your lender can take possession of your car.
For more tips on managing debt, read 5 Surprising Ways to Help Manage Credit Card Debt. Therefore, the interest rate can go up or down, resulting in payments that may change.
Revolving credit is a type of loan that you can access on demand, up to a limit predetermined by your lender or credit card issuer.
A credit card is a common type of revolving credit.