Credit Card Debt Relief – Why To Consolidate Before It's Too Late

Credit Card Debt Relief Why To Consolidate Before It's Too Late

Credit cards have revolutionized the purchasing experience since Diners Club released the first credit card in 1950.

It gave consumers limited credit that, at times, even surpassed their own personal savings. It allowed them to buy items they cannot usually afford with a straight cash purchase. It also provided the convenience of not needing to carry wads of dollar bills.

Thus, on the average, American households possess 4 credit cards or a total of 13 payment cards including debt cards and store cards aside from credit cards. There are, actually, 1.3 billion payment cards in circulation in the United States.

But if you think that credit cards have made the lives of modern American consumers easier, think again.

Statistics show that the average credit card debt for each household per month is $4,800. This lead to 1.3 million credit card holders declaring bankruptcy in 2003.

And if you still consider yourself unaffected by this, then consider this one: upon retirement, most Americans can only expect to receive about 37% percent of their annual retirement income because of debt payment, leaving them to depend on the government, family and charity.

That's scary. So before you find yourself in the same situation, it might be time to evaluate your credit card debt.

One way of resolving debt that you might consider is credit card consolidation.

So what is credit card debt consolidation?

In a nutshell, credit card consolidation is taking all your credit card debt dues and consolidating them into one monthly payment. This way, you don't have to worry about managing the payments individually. Aside from that, it may also provide you the additional benefits:

- Reduce interest payments

- Waive late and overtime fees

- Low monthly payments

- Debt relief in a shorter time

- Credit improvement

- Save more money in the long run

You will also need to know that there are actually two major types of credit card consolidation.

First is through a Credit Card Counseling firm. They assist consumers by consolidating all their monthly payments into one single payment and then disperse this to the creditors in behalf of the consumers until they are debt-free.

The other type is through a home equity loan or other secured loan. This is done by exchanging an unsecured debt (such as credit card debt) for a secured debt (a debt backed by specific assets such as real estate).

Now, credit card debt consolidation isn't a magic balm that will drive all your credit card debt malaise away. But it will make paying all your debt easier and might save you money in the long run.

POST COMMENT

How To Improve Credit Scores Personal Loan for Bad Credit Users Can Be a Blessing Getting Free From Debt – Legitimate Steps To Get Free From Credit Card Debt Compare Credit Cards to Locate the Best Products A How-To Guide on Settling Credit Card Debt Help With Credit Card Debt – How To Get Out Of Debt Now Getting Out Of Credit Card Debt –Proven Steps For Credit Card Debt Relief Reduce Credit Card Debt – Simple Methods To Get Out Of Debt Buy Now Pay Later No Credit Check Plans Credit Card Debt Settlement – A Win Win Situation For You And The Creditor Are you caught in the credit card spiral? Credit Card Debt Relief - Secrets of Debt Relief Credit Card Debt Settlement - Settle Debt And Be Financially Free Beat Credit Card Debt - How Credit Card Debt Consolidation Works