Credit Card Debt Consolidation: Finding The Balance Between Comfort And Concern

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Among the seasoned vets entrenched within the consumer finance community, balance transfers are widely considered to be a stopgap measure at best for consumers possessing serious credit card debt totals. Certainly, experienced debt relief officers working for independent firms that have no direct ties to lending institutions will argue against this approach to credit card debt consolidation for a number of different reasons, not least because switching balances to enjoy the effects of a (strictly temporary, we rush to remind) reduced interest rate shall more likely confuse heads of household about their actual degree of progress and lure them towards a false sense of confidence. Indeed, one could argue whether or not consolidating bills onto a separate account could even be rightfully interpreted as debt relief, since the majority of the borrowers shall indulge the opportunity for renewed spending binges on the card that’s been cleared and soon enough have double the worry.Now, we do understand that not every debtor who transfers balances between unsecured lenders as part of a credit card debt consolidation will end up succumbing to the worst temptations of credit privileges. Under very specific circumstances, this sort of plan could even be of some benefit so long as the men and women understand the dangers of the system. When families suffering through emergency situations not at all within their control need to suddenly borrow every dollar available to see them safely through the hard times, the desire to simply spin the credit card debts onto a new account with an Annual Percentage Rate in the low single digits – essentially avoiding the worst consequences of compound interest until they’re prepared to begin the full thrust of debt relief – might also have some practical justifications.Though into each life some rain must fall, most of us who’ve borrowed unsecured sums large enough to require credit card debt consolidation slowly nickel and dimed their way toward seemingly inescapable burdens through the ordinary odds and ends of modern American lives. Honestly, even if the spending history of the consumers would tend to indicate that the most recent accumulation of debts was a fluke, the balance transfer option still won’t be a realistic strategy unless there’s a virtual certainty of significant funds coming to the family through a work bonus or inheritance of some other means.When there’s not the presumption of sufficient money on the horizon that would enable you to fully pay off the other loan, then you’ll be at the mercy of the interest rate from the other account which will most assuredly rise after the first year following the credit card debt consolidation. At least, under the new legislation steamrolled through the United States Congress thanks to the Obama administration, you now know that you’ll be able to rely upon the introductory rate advertised as feature of the balance transfer for the full twelve months. However, based upon the statutes of that same CARD Act, it’s that much tougher to find a decent credit card debt consolidation offer on the table. The lending institutions have held back from handing out assistance through transfers until they feel that they understand more about the effects of the legislation, but, as we’ve hopefully illustrated, a greater degree of patience and perusal about consolidations may be in your best interest.