Generally speaking, having excellent credit is a positive reward for having worked long and hard toward a goal. Sometimes, though, excellent credit can lead to over zealousness in acquiring loans; and sometimes those with excellent credit find themselves committed to paying on too many loans with interest accumulating regularly. It’s also possible that you were living well within your means, but you were struck by unforeseen circumstances which caused you to lose the livelihood on which you’d grown to depend.
Whatever the cause of your mounting debt, sometimes the best last ditch effort to hold on to excellent credit and straighten out your financial situation is to apply for a credit card with a high credit limit, zero per cent APR, and free or low cost balance transfers from other creditors.
If your credit score is still high, you should qualify for a credit limit of possibly up to $50K or more, depending on your relationship with various creditors and the details of your credit profile. Some banks won’t offer more than $25K except in extenuating circumstances for long time customers who’ve been consistently earning a higher credit limit over the course of time. There are a variety of other banks and many credit unions, however, that habitually offer up to $50K or $60K to those who have proven their credit worthiness over the years whether it was through them or through other lenders.
Not only should you qualify for a very high credit limit on a credit card from a large bank or credit union, you should also be able to find a great deal that offers a 0% APR for at least 12-18 months and minimal or no fees on balance transfers for the same period of time. If you have outstanding car loans, bank loans for large purchases like a boat or trailer, lower limit credit cards with high balances, or any other interest-charging loans, you will be able to transfer those balances (at least up to your available credit limit) and finally start paying more on the principal balance rather than getting behind on all the interest.
If your consolidating your loans on a high limit credit card because your financial situation has changed, you probably won’t be able to afford the total amount you would have paid on each loan altogether. You should, however, focus on paying as much as you possibly can during the time in which you aren’t being charged interest. The lower your principal balance becomes, the less you will have to pay in interest once your introductory period is over.
If you’re simply consolidating your debt for preventative measures and you’re still in the same financial situation, you should definitely maintain at least the amount you were paying to each creditor before consolidating onto your high limit credit card. If you can afford more while you’re not liable for any interest, it would be in your best interest to compare balance transfer offers and get it paid now rather than later when you no longer have the luxury of 0% APR.