About to hit the balance transfer button to consolidate credit cards?

Some things to think about before you do a balance transfer to consolidate credit cards...

Choose to transfer a balance to a credit card that offers the rewards that are most valuable to you:

· If you fly a lot, does it offer flight reward points/free miles and how many when compared to others?

· If you are going to shop with a credit card anyway, does it offer purchase points?

· If you are interested in taking advantage of an introductory low credit card rate for balance transfers and purchases, does it offer that rate longer than others and does it offer a competitive rate afterwards?

· If you are big on redeeming reward points, what are the credit card’s policies on point expiration?

How do you do it right?

Every card is different, but in general the steps may be as follows (along with some tips):

1. You’ll complete an application form and choose the balance transfer option.

(You can transfer any amount under your available credit line - be careful, you don’t want to transfer too little and end up with a balance on the first card - transfer an amount by finding out what your balance will be in a week or two.)

2. Once you’re approved for the balance transfer, the new credit card company will pay off each of the credit cards you had specified.

(Be sure to check with the other credit cards during the process, you’ll need to continue to make payments if due dates come up.)

3. Once the transfer is completed, you’ll see the available credit line of the new card reduced by the balance transfer amount.

Now, you have a choice...you are at a fork in your financial road...are you going to continue your spending habits as you did before or are you taking the smart, focused road?

Maybe it's time to focus.

Think about the balance you are transferring. How did it get to that amount?

What could you do differently next time?

Well, now is your chance. Take a step back from your daily routines and write down what you are going to do.

Writing things down is critical before doing them. It prepares you mentally and makes things real.

Speaking of real, don't write things that are so far-fetched they are never going to happen. Be honest with yourself and keep things very simple.

Also, don't write a million things you'll need to do - keep the number down to three to five quick and simple things you can do right now.

I'll give you one (but it's a doozy!): keep your credit card at home when you go shopping or limit it to one out of five times.

You decide, but keep it real.
After you write down the things you'll need to do, make copies and keep them posted near you.

As time passes, monitor your progress and rate yourself by asking yourself: Is my credit card debt increasing or decreasing? Am I going to need to do another balance transfer?

In the end, results are what matter and hopefully, you're improving as the game goes on.

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