Carrickfergus Advertiser - Features - Consolidating Your Credit Cards is Becoming More Popular in the UK for a Reason

Features

Consolidating Your Credit Cards is Becoming More Popular in the UK for a Reason

Tuesday, 5 October 2010

Many people in the UK have moved on from the standard credit card usage patterns of the past 20 years, when it was normal to have several credit cards floating around in your purse or wallet. Nowadays, more and more consumers are streamlining their credit card use by consolidating all of their existing cards into one.

Studies by the British Banking Association have shown a decline in the number of credits cards being used, but an increase in transactions. What does this tell us about how people are using their credit cards? Well, it suggests that they are realising that it is now more cost effective to consolidate their borrowing. Not only does this become less confusing as you're not juggling around various credit cards plus different bills which can be difficult to keep track of, but it can also save you money.

When it comes to the cost of consolidating your credit cards, many companies now offer zero per cent balance transfers. These mean that you can put all of your credit card debts onto a single one without having to pay for the privilege. Be mindful, though, that despite there being many 0% balance transfer credit cards, there may be a small handling fee applicable. Even with the small handling fee, however, it can still be financially worthwhile to have just one credit card.

There are also savings to be made through consolidation if you choose the right credit card company; some will offer zero per cent interest on goods purchased for certain periods of time, ranging generally from a month to up to a year. This is one of the reasons why many people are now using their credit cards for purchasing goods; and not simply for paying bills or borrowing some extra money.

The best way to check whether you would be better off by consolidating all of you credit cards into one is to simply work out the average interest rate of all your current credit cards. To do this, add up the interest rates of all the cards you have and then divide the number you get by the number of cards. If this is less than the rate being offered by a certain credit card company, then consolidation is obviously worth considering.

Consolidating your credit cards has never been easier, either, as you can apply online after you've checked which the best deal is for you.

When changing credit card companies, it is also worth seeing what deals other than zero per cent balance transfers you may be offered. For example, if you're mostly going to be using your credit card to make purchases in certain retail outlets, then some credit card companies offer substantial discounts for those shops.

There are also other factors to consider when consolidating, one of which is the positive effect it will have on your credit rating. It's easy and well worth spending the time to work out what company is offering the best deal, and thanks to the Internet, this shouldn't be too difficult or take too long. There are even several price comparison sites online which can make the process simpler.

It's a sad fact that many people get themselves into financial trouble by running out of money before payday. They then spend money on one card and miss repayments on another. Credit card consolidation is a simpler, easier and more affordable way to manage your credit card bills and keep track of where you are financially.

When it comes to keeping tabs on where you are, things have never been easier; most credit card companies now offer online billing. This means that you'll receive an email each month with your bill attached, and that if you log on to your credit card company's website, you can also check your current balance at any time.

Perhaps the most noticeable advantage of consolidation is only having one company to deal with, though. As well as greatly simplifying your monthly accounting, this can also reduce the chance of fraud: if you only have one card to lose, any potential thieves will only have one card to use. As soon as you realise that your card has been lost, all you'll have to do is contact a single credit card company. They'll then block the stolen one and send you out a new copy as soon as possible.