Pros and cons of consolidating credit cards

You also must be careful not to continue using more credit (with credit cards) after entering the debt consolidation program.Otherwise, you’ll end up with the same amount of debt – or more.

And if you miss a payment (or are late) you could face costly penalties and your interest rate could be increased.In theory, these can serve as a way to consolidate your debt onto one card, but be careful because the fine print on these offers sometimes exposes serious drawbacks.Here’s how it’s supposed to work: you initiate the balance transfer and pay a immediate transfer fee – usually between 2% and 5% of your total balance.On the other hand, when it comes to your mortgage, your house serves as collateral, so that if you were to stop paying your mortgage, the bank could take your house.

Pros and cons of consolidating credit cards comments

  • How to Consolidate Credit Card Debt - NerdWallet profil de paulette60


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