Consolidate, Before It's Too Late
By David Riewe
Publisher and Online Marketer
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
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.
About the Author: David Riewe is a Publisher and
Online Marketer. Visit his Credit Resources Blog Below: http://www.push-button-online-income.com/creditcards/
Published - December 2005