subject: Consolidate Credit Card Debt: Information That Can Save You Money [print this page] Credit cards are a wonderful invention, at least in theory. After all, there many times in life when it just makes sense to be able to buy what we need right now, even if we cannot afford it. Furthermore, the idea of taking on temporary debt is a perfectly-legitimate means of gaining capital for whatever reason, and companies practice it every day.
Yes, the ability to take on debt provides consumers with an amazing opportunity to have the freedom to buy what we need or want right now. However, this opportunity also has a downside: the possibility of running up too much debt.
The tendency to take on too much debt has become a major problem for tens of millions of households around the country. Many people find themselves so far into debt that they do not know how they will ever get themselves back out.
Credit cards are particularly well-suited to keeping people in debt. This is for two reasons: a. most have very high interest rates; and b. it is just so tempting to use them. Just when we start making some headway in paying down our debt, it seems we just want to charge more purchases to our cards.
If you have multiple lines of credit, you may want to consider consolidating your debt. If you are looking to consolidate credit card debt, this information can be your best friend and can save you money.
How to Tell if You Have Too Much Debt
A telling sign that you have too much credit card debt is if you find that the payments due each month are starting to become difficult to make. Another sign is if, despite having trouble making your payments, you find that your total credit card debt is actually increasing each month. That means you are in too deep.
How Debt Consolidation Can Save You Money
When you consolidate your debt, you are basically paying off most or all of your high-interest debt in exchange for a single new loan offered at a lower interest rate. The new loan allows you to make the same payment each month, and the payments are usually spread out over an even number of years. Unlike with credit card debt, with a consolidation loan you are given a target date when you will have it all paid down.
Steps to Consolidation
To consolidate your debt, follow these steps:
1. Take a tally of your existing debt, how much you owe on each card, and each card's interest rate.
2. Take this information to a lender who specializes in this type of loan.
3. Hint: make sure to apply to at least 3-4 lenders. After all, finding a lender who will offer you a lower interest rate than the others is worth spending time to search for; it could save you thousands over the life of the loan.
Follow these 3 steps to finding a loan that will allow you to consolidate your debt.
Consolidate Credit Card Debt: Information That Can Save You Money
