Living a plastic life can lead you to ruin, which can lead you to filing bankruptcy. Plastic money though can be helpful enough, it can lead you so deep in debt, that if you fail to take heed form the beginning, you may not be able to swim out of it. Therefore, it is important for you to avoid using credit cards as much as possible. But, what if you are already in debt? Can shuffling over the debts from some of your credit cards to another, the way out of the debt hell? If you are thinking that balance transfer or shuffling the debts simply can help you do away with the debts, then you are wrong. However, if you are thinking of changing the way in which you have been spending and if you are going to work on debt consolidation at the same time, it may actually work in your favor.
What does credit card shuffle involve?
Shuffling of the credit card debt involves nothing but transferring of the balance from all of the credit cards which have high interest rate to the one that has low interest rate. This proves to be helpful enough because, the interest rate on the debt consolidated through the balance transfer or debt shuffle, gets lowered. So, credit card debt shuffle is nothing but a type of debt consolidation process, which helps you in paying down most of your debts with ease.
Another option under credit card debt shuffling or the balance transfer process is that, you can take out a new credit card, which is offering 0% on balance transfer. So, after you take out this credit card, you can transfer the balance from the existing credit cards to this new 0% card. Therefore, it becomes all the easier for you to go on making the payments.
Advantages of shuffling your credit card debt
There are various advantages of shuffling your debt and these are:
1. It lowers the interest rate – Debt consolidation or balance transfer helps by lowering the interest rate on your credit card debt. That is, after you transfer the balance from all of your credit cards to a single card with 0 or low interest rate, it becomes easier for you to make the payments. As the interest rate lowers the payments amount to be made lowers considerably too.
2. It reduces debt to one – Credit cards if owned by you have been several, the debt payments to be made have been several too. However, with debt consolidation or the shuffle, you can get to consolidate all of those into a single debt. Thus, it becomes easier for you to pay down the credit card debt and therefore, get out of it too.
3. It helps easing the pressure – As the number of payments to be made in a month lowers to one, the pressure of making the payment lowers too. Thus, you need not fear that you are going to miss any payments or hurt your credit.
4. It helps in avoiding bankruptcy – As you can go on to pay off your credit card debt, as you need not miss any payments, and as all of these help you become debt free, it helps you avoid bankruptcy too. For, if you fall too deep in debt, you may have no other option but to file bankruptcy.
However, you will have to keep in mind that simply opting for debt consolidation under balance transfer may not be of much help for you and the debts.
So, what would you be required to do, other than shuffling your credit card debts?
You would be required to avoid using too much of credit cards. Even if you have some, it would be wise of you to put these away. For, the credit cards are the most common tools which lead you deep in debt and fast too. However, coming out of the debt sea is not as easy as getting into it is. Unlike the Dead Sea, you can’t stay afloat in a debt sea.