Credit Card Debt Consolidation

If you have good credit and are in the military, credit-card issuers will woo you with new credit offers. It's easy to end up with a wallet full of credit cards. While it's always good to have a backup card for an emergency, a general credit card rule is to stick to one card - the one with the best rate for the longest time - to minimize the number of bills you pay and maximize your credit rating.

A good choice can be a no-fee rewards credit card that you pay in full every month. However, if you do carry a balance, you may be subject to a variable interest rate as high as 19%. And if you're late with payments or used up too much of your credit limit, you may get a penalty as high as 30%.

If you do plan to carry a credit card balance, it's easier to pay off if your credit card interest rate is well below today's 14.1% average. Meanwhile, credit card penalty fees have been on the rise for years. The average late fee in 2005, for example, was $34, up from $13 in 1995, according to the Government Accountability Office. Over-the-limit fees, meanwhile, were $31, up from $13 during the same period.

A 0%-balance-transfer teaser is tempting, but you can owe fees as high as 4% of the balance. And if you can't pay it off within six or 12 months, you'll be left with the hassle of chasing the next 0% offer.

For simplicity and consistency, choose a card with a low, ongoing rate. For instance, The American Express Blue card (800-223-2670) charges 4.99% for the life of the balance you transfer. Discover Card also offers low interest rate for the life of the balance. And there are others. Once a month, research internet for the best credit card rates and stay abreast of the best offers. It's a smart military money move.