Q&A: How to combine credit cards, to pay them off in one lump sum?
These are useful and collceted by Anne!
Question: How to combine credit cards, to pay them off in one lump sum?
I have two credit cards with debt of 7,000 with both cards combined. Is there a way that I can combine those credit cards and lower the payment and pay them in one lump sum? I just want to get rid of these cards so I can move on with my financial growth.
The following is the answer:
Answer by just me
Yes, you can take your balance from one card and put in on the other. A lot of times they’ll have promotions such as 0% interest for a year on any balance transfers you make. Just call the card with the lower interest and they’ll do a balance transfer right over the phone. You just give them the info on the other card.
Answer by sunnybrooke
There are a couple of different ways you can combine debt. First you could do the balance transfer if you have a big enough line of credit on one card, but be warned, there is usually a fee for transferring balances so you could end up just adding more to your debt. Also those 0% interest offers look good, but if they are introductory offers, let’s say for 6 months, if you don’t get the entire loan paid off in 6 months you could be charged that 6 months worth of interest anyway. They’ll just tack it right on to your balance.
You could go to a bank and ask for a loan and pay the credit cards off, it will depend on your credit score whether you’ll get a good interest rate or a line of credit that is large enough.
I personally suggest paying off the credit card with the highest interest rate first. Don’t combine the cards, just take care of them one at a time. Pay the minimum on one card and the higher interest rate card send every xtra penny you can to them. Once that is paid off, take what you were paying on them and add it to the minimum payment on your last card. It’s called snowballing and will help you get your debt paid off quick if you stick to it. I used this method to pay off 10 thousand dollars in credit card debt in two years. Good luck.
Answer by Ash
You can take balance from one card and put in on the other. You’ll get many benifits like 0% interst, and so on,
You can more on credit cards at,
http://freeeasycredit.blogspot.com/
What do you think? Answer below!
Credit Cards charge a lot in interest, if you compare credit cards interest to personal loan interest you can generally get a lower interest rate.
If you plan to repay the total amount within a few months then you shouldn’t need to combine the totals just pay off the credit card with the most interest first as was mentioned before.
But if your going to take longer to pay off your debt then maybe you should do the sums and compare what a personal loan can do for you.
$7000 at 10% over 1 year = $733 interest charged
$7000 at 20% over 1 year = $1536 interest charged
There is a saving of $803 if you half your interest with a loan or lower rate credit card.
Check out this credit card interest chart, http://bestratecreditcards.com.au/yearly-credit-card-interest.php