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Credit Card Debt Consolidation

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The benefits from Credit card debt consolidation
Credit card debt consolidation seems to be the most talked-about term in the world of credit cards. It’s true that credit cards have been very useful and convenient for us, and we, in fact, treat credit cards as a necessity. However, with every good, there is evil too. In the world of credit cards, “credit card debt” is evil, and “credit card debt consolidation” is often regarded as a medicine for treating credit card debt.
Anyone who has read any newspaper articles on “credit card debt’ would already know what credit card debt consolidation is. However, just for the benefit of others, credit card debt consolidation, in simple terms, is the process of consolidating debt that you hold on various high-APR credit cards onto just one low-APR credit card. Thus, the main benefit of credit card debt consolidation is realized in terms of APR reduction (and hence credit card debt growth rate). This is touted as the most important benefit (and sometimes the sole benefit) of credit card debt consolidation. However, credit card debt consolidation comes with a few more benefits as well. Some of these credit card debt consolidation benefits are widely publicized by the credit card suppliers, and some are not so much:
1. Initial APR: As mentioned above, a lower APR is the biggest benefit of credit card debt consolidation. Since credit card debt consolidation is used by credit card suppliers as a tool to attract consumers, they generally offer a 0% APR for an initial period of 6–9 months after you join their credit card debt consolidation program, i.e., the first few months after you get the new credit card.
2. Standard APR: Lower standard APR (i.e. the long-term APR) is the other important benefit of credit card debt consolidation. Though not all credit card suppliers offer a lower standard APR with credit card debt consolidation, some do design credit card debt consolidation programs with good standard APR. These credit card debt consolidation programs offer a trade-off between initial and standard APR rates.
3. 0% on purchases: This is another common benefit of credit card debt consolidation. The 0% interest (or some lower percentage) on purchases is offered as an incentive for credit card debt consolidation. This credit card debt consolidation benefit is again applicable only for a short initial period.
4. Easy management: This credit card debt consolidation benefit is not as discussed as others. However, one benefit of credit card debt consolidation (from multiple to single credit cards) is the fact that you need to track and manage a lesser number of credit cards.
5. Other benefits: The credit card debt consolidation exercise might bring you some more benefits in terms of rebates, discounts, and reward points (especially if you move to a co-branded card as part of credit card debt consolidation)

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