Credit Card Debt
Credit Card Debt Consolidation
More
and more Americans are experiencing high amounts of debt. The average
credit card holder carries 3 to 4 credit cards, and an estimated 20% of
those card holders have "maxed out" their credit cards.
These are some disturbing statistics:
One possible solution to credit card debt is credit card debt consolidation. Credit card debt consolidation can decrease your interest rates, decrease your monthly payments, and possibly decrease the length of your obligation by combining your credit card balances to one single creditor with one monthly bill.
If you carry 3 credit cards with interest rates of 18%, 13%, and 9%, the average interest rate you are paying is 13.33%. A credit consolidation service can negotiate with your creditors to lower interest rates. As an example - 12%, 10%, and 8%, which you will now pay an average of 10%. Thus saving you money at the end of the month.
The money that is saved at the end of the month could be used towards the principle of the loan to pay off the debt sooner. Another alternative is to put this money away to start building a cash reserve for any possible future needs.
Credit card debt consolidation may not be for everyone. Your personal circumstances may be different from others. Therefore, it is always best to consult with qualified financial professionals in their respected fields to determine which credit card debt service is right for you.
These are some disturbing statistics:
- Average credit card debt per household is $8,400
- 40% of Americans spend more than they earn
- An $8,000 debt at a rate of 18% interest (average interest rate on credit cards is 18.9%) will take 25 years to pay off and cost more than $24,000 in the long run
source:
http://creditcounselingbiz.com/credit_counseling_statistics.htm
With
this growing trend of credit card debt, there is an increasing number
of American households entering credit counseling and filing for
bankruptcies. Many are seeking alternative solutions to avoid legal
proceedings and to restore and/or improve their credit. One possible solution to credit card debt is credit card debt consolidation. Credit card debt consolidation can decrease your interest rates, decrease your monthly payments, and possibly decrease the length of your obligation by combining your credit card balances to one single creditor with one monthly bill.
If you carry 3 credit cards with interest rates of 18%, 13%, and 9%, the average interest rate you are paying is 13.33%. A credit consolidation service can negotiate with your creditors to lower interest rates. As an example - 12%, 10%, and 8%, which you will now pay an average of 10%. Thus saving you money at the end of the month.
The money that is saved at the end of the month could be used towards the principle of the loan to pay off the debt sooner. Another alternative is to put this money away to start building a cash reserve for any possible future needs.
Credit card debt consolidation may not be for everyone. Your personal circumstances may be different from others. Therefore, it is always best to consult with qualified financial professionals in their respected fields to determine which credit card debt service is right for you.