Managing debt consolidation with 0% credit cards

Credit card debt consolidation may be easier than people think. Although many lenders offer different types of loans to consolidate credit card debt, there is an easier way. Cardholders can use the preferential 0% interest rates offered by lenders to new customers to consolidate their debts, pay no interest and eventually eliminate credit card debt altogether.

Debt consolidation with a credit card can be managed through a process known as rate surfing. This refers to the practice of moving debt from credit card to credit card to take advantage of preferential interest rates. Rate surfing is also called credit card jumping, credit card tarting and serial switching.

To start the process of credit card debt consolidation, start by applying for a credit card which offers a 0% APR on balance transfers. This can be done through and online credit card application or a paper form which is available from most lenders. Lenders will assess the application based on the credit score and then will issue the credit card.

Once a person has a 0% APR credit card, the debt consolidation process can begin. Cardholders need to transfer outstanding balances from credit cards, store cards and loans to the new 0% interest rate credit card. Provided the credit limit is large enough, this will consolidate the existing debt on the new credit card.

How To Rate Surf Successfully

To rate surf successfully, cardholders need to pay attention to the expiry date of the preferential offer. With most 0% APR credit cards, the preferential rate lasts for six months, though some may offer the rate for as long as 12 months. Rate surfers need to apply for a new 0% credit card at least six weeks before the end of the offer. Once that arrives, it's time to move the outstanding balance from the old card to the new one and continue to process of credit card debt consolidation.

Over the long term, this is a good way to eliminate credit card debt altogether. To do this, cardholders need to make the required repayments on time and in full. It is also essential to switch balances to new credit cards well before the 0% interest rate expires, otherwise cardholders could end up paying the normal rate on credit card balances.

Many 0% APR credit cards charge a fee for transferring credit card and store card balances and loan amounts. This is usually around 2% or 3% of the balance transferred. There are also some credit cards that do not charge a balance transfer fee. Some cards also offer the 0% interest rate on purchases, though cardholders should avoid putting additional spending on the card to get the best from consolidating debt. Whichever credit card people go for, using 0% interest rates is an ideal method of credit card debt consolidation.