Can I use a credit card to consolidate debt?

People often open new credit card accounts to consolidate other credit card debt since issuers sometimes provide low introductory interest rates for balance transfers. Whether such action makes sense depends from one person to another. Here are some things to consider:

How long is the introductory rate on the new credit card good for?

If you are in between jobs and expect to pay off your debt in a couple of months it may make sense to transfer your debt balance to a new low introductory rate credit card. When the intro rate runs out (be sure to confirm the timeframe - 2 months, 3 months, 6 months, etc.), you should be able to pay the balance.

What is the interest rate on the credit card after the introductory rate runs out?

If you do not expect to be able to pay off the principal balance after the introductory period runs out, you should know all the fees and interest that you will be charged on the outstanding credit card balance after that time.

How much debt are you trying to consolidate?

Sometimes it is difficult for new credit card owners to get approved for a high credit limit. Credit card issuers often start off new users with a lower limit and then keep increasing it with time. If you are looking to consolidate several thousand dollars and you are a home owner, you may want to look into home equity loans where your home is put up as collateral for a loan.