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Of all the debt people accumulate, it
seems credit card debt is by far the most pervasive and the most
injurious to a person's financial well being. Why?
Credit cards are easy to come by. Banks are more than willing to
issue credit cards because of the favorable risk/reward ratios
associated with them. In other words, banks make so much money on
credit card interest, that they feel they can afford to loose a
certain amount of money on bad debts. In fact, they expect to and
they've already factored these losses into their rates and fees. So
...
Credit cards offer unsecured debt. When you are issued a credit
card, you simply promise to pay the balance due as prescribed in
your credit card agreement. That's it! You don't have to put any
personal belongings up as collateral and you risk loosing nothing
except your good name and your future credit-worthiness. So ...
Credit cards are easy to use. There is no need to carry cash with
you wherever you go and aside from safety issues, this also means
you don't have to fork over your cash for at least 20 days. So ...
Credit cards delay the inevitable. This can be a convenience or a
nightmare waiting to happen depending on whether or not you have the
money to pay off your credit card debt in a reasonable time frame.
So ...
Many people go overboard, finding it difficult if not impossible to
control their spending habits. Until they find they have no more
credit and a stack of bills from this creditor and that. It's
usually at this point that people look to consolidate their credit
card debt.
Consolidating credit card debt makes sense for many, though it is
not without its caveats. To consolidate credit card debt simply
means to find a lender who will pay off all your existing credit
card balances and present you with a single bill each month to
replace the many you now have. If you have difficulty keeping track
of your spending or paying each bill when due, it may be to your
advantage to consider credit card debt consolidation. Just be sure
to pay off the new loan before incurring any new debt or you'll soon
find yourself in the same sinking financial boat as before.
Aside from the single payment that replaces many smaller payments,
credit card debt consolidation may offer you a lower monthly payment
as well. But note that if your payment is lower, you may be required
to make payments over a longer period of time making this
alternative more expensive in the long run.
If you are unable to keep up with your credit card debt, there is
every likelihood that you may be considered a poor credit risk,
unless you can show that your debt is due to circumstances beyond
your control such as a prolonged illness or unemployment. Be
prepared to offer the debt consolidator collateral against your
loan.
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We consolidate your
debts by negotiating better terms, lower interest rates and often a large
cut in the total debt principal. Our program provides you with a real
alternative to never-ending minimum payments -- one that allows you to
completely free yourself from debt, often within one-quarter of the
debt-free timeline!
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