People who have credit card debt are often advised to consolidate credit card debt. So, what do we mean by ‘consolidate credit card debt’. Simply put, it means putting together debt form several credit cards into one (or two) credit card. This consolidation can be done by either low interest bank loan or by putting the balance to a new credit card. This simply means, putting your borrowed money from one credit card to a new credit card/s.

What are the requirements for credit card debt consolidation? The first thing to look for is the APR or the annual percentage rate. The APR is always the basic factor in selecting a credit card in whatever means you use in credit card debt consolidation. So if you apply for a bank loan to consolidate credit card, the interest rate on the bank loan must be lower than the APR of the credit cards whose debt you are consolidating.

But, there is a thing you should be aware of when deciding to merge credit card debt. The APR rates declared by credit card firms are the short term APR rates which are made to attract credit card owners to merge credit card debt with them. Short term APR rates are those applicable only at the start of not more than 12 months or some other time after which the APR rates go higher. When you begin the merging of credit card debt with these credit card firms, they will offer you a lower or even 0% APR for the first 6-12 months, but a much higher APR on the next period. Customers must constantly check about the higher APR.

Your intention to merge credit card debt will be a success only if the new APR rate is lower or the same with the APR on your existing credit card. You can check with your present credit card company to check if they lowered your APR. This will certainly make things easier for you.

Before you start merging your credit card obligation, you must realize that credit card debt consolidation will be beneficial only if you oblige yourself to accept and do sound credit card practices like monitoring your spending habits and on-time monthly payment of credit card dues.