Is a Low Interest Credit Card the Answer to Consolidating Debt?

Those credit card offers just keep coming.  Seems there’s hardly a day goes by that your mail box is not stuffed with some new bank offering you attractive low rates to consolidate your debt. 


But there’s a danger lurking for you also, one you may already be painfully aware of!


The low rate the bank is offering you is called an introductory rate. The introductory, a.k.a teaser rate credit card has created billions of rands for the financial industry.


The introductory interest rate is applicable only for a short period of time, usually only a few months.


Thereafter your rate will be adjusted and you will pay end up paying the standard interest rate.


If you do decide to consolidate your debt to a credit card that has a low introductory rate, you should not ignore the standard interest rate that you will be paying once the introductory period has lapsed.


If the standard interest rate  is too high and you know that you will not be able to settle the credit card balance during while you are still enjoying low rates, then the such a low interest card is probably not the best option available to you.


However, if you are confident that you will be able to settle your credit card debt during the introductory period you will be able to save money over that period.


Whatever your decision, just remember one thing…


Credit card companies do not make any money if they are financing your debt at below prime interest rates!


For more on debt consolidation, mortgages and other related articles, go to




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