Is Credit Card Debt Consolidation for You?

Have your credit cards recently not really been feeling much like promise of freedom to spend that they came with originally? Have your credit card statements been getting scarier and scarier each month? You’re probably even scared to open your e-mail or look at your text messages for fear that you’ll see something unpleasant from a creditor. If this is the kind of thing that you’re going through everyday, perhaps you really should consider credit card debt consolidation. Paul Smith from James Milne Accountants explains more.

How should consolidation help you? They don’t actually excuse you a dime, do they? Well, no they don’t. You still have to pay every cent. But combining all your separate credit card loans into one credit card loan offers a lot of benefits, and it will help you pay your loans off quicker.

How do you know that you are a good candidate for credit card debt consolidation? Well, the formula the experts usually go by is this: if you have at least six credit cards, if you owe $10,000 on them put together, and if the $10,000 is at least half of your available credit limit, it really would be in your best interests to seek consolidation.

Credit card debt consolidation loans are different from regular loans. These are unsecured loans – you have to leave something of equal worth with them to secure what they give you. And they only hand these out for credit card loans.

American households are wallowing in debt today. The average household carries about £15,000 worth of credit card debt. And things are so bad for so many families, about 3 million Americans every year look up a credit counselor to help them stay clear of Bankruptcy Court. If you want to look on the positive side, a full one third of the uK’s population are so responsible with their credit cards that they don’t carry any balance it all. And another quarter of us don’t even have a credit card.

Yes, all those neat figures do make you feel a bit embarrassed about the state of your affairs. But you can quickly repair things. Things don’t have to be this way any longer. You can follow the example they’ve set. And you can get started with a bit of credit card debt consolidation to fix the way things are.

Before you do though, you need to first make sure you’re not adding to the problem anymore. You want to make sure that you don’t spend more than you can afford to pay right away.

Debt consolidation is a great idea if the interest rate you end up paying every month is lower than what you’re paying already.