Consolidate credit-card-debt
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Consolidate credit-card-debt

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If you are up to your ears in credit card debt, life can become very difficult; it makes you feel as if you were drowning in a sea of debt. However, if this is the situation in which you find ...

If you are up to your ears in credit card debt, life can become very difficult; it makes you feel as if you were drowning in a sea of debt. However, if this is the situation in which you find yourself, don’t lose hope… because there are strategies which will help you. If you consolidate credit card debt, it can help to reduce your debts quickly. Also, it is not enough to consolidate credit card debt, rather the manner in which you consolidate credit card debt must also be sensible, otherwise you risk losing even more money in the long run!

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Consolidate credit-card-debt Document Transcript

  • 1. By Dermot Farrell Copyright © 2012 http://www.creditcarddebtsecrets.orgThe Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org
  • 2. If you are up to your ears in credit card debt, life can become very difficult; itmakes you feel as if you were drowning in a sea of debt. However, if this is thesituation in which you find yourself, don’t lose hope… because there are strategieswhich will help you. If you consolidate credit card debt, it can help to reduce yourdebts quickly. Also, it is not enough to consolidate credit card debt, rather themanner in which you consolidate credit card debt must also be sensible, otherwiseyou risk losing even more money in the long run! What Does it Entail to Consolidate Credit Card Debt?First off, let’s start by considering the option to consolidate credit card debt. Thetwo aspects of credit card debt which are binding you in a web of unpaid bills, arethe debt principle and the double digit interest rates. While a large principle isdifficult enough to deal with, for most debtors, it is the double digit interest rateswhich raise up the credit card debt repayments. When you consolidate credit carddebt you manage to bring down this interest rate to a considerable degree, whichwill help to give you your life back.Let’s look an example here…If a credit card debtor owes $20,000 on their credit cards, and the average rate ofinterest work out at 18%, the total payment will work out at a total of $35,175over 84 months (this is presuming minimum repayments only). Whereas if they canreduce this interest rate down to 12% then the total amount will work out to beonly $23,915, which is a saving of 31%!So there is no question about it, the option to consolidate credit card debt works,however, it is vital to consolidate credit card debt in a sane way! How to Consolidate Credit Card Debt SanelyWhile credit card debt consolidation is a really good debt reduction option, it isimportant to consolidate credit card debt in way which works for you and yourunique set of circumstances.For instance, some of the many apparent credit card debt consolidation methods,such as credit card debt consolidation loans, zero interest or low interest creditcard balance transfers, and even additional credit cards, appear good, but theydon’t deliver in the long run!Why are these bad?In the case of a credit card debt consolidation loan, it is loan and has to be paidback. So if you default on it then you have one more unpaid loan. The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org
  • 3. Indeed because credit card debt consolidation loans give the impression that yourdebts are lower than they are. Far too many debtors take out these loans only togo on adding debt onto their credit cards. Because they rack up debts they findthat quite quickly, whatever breathing space they received under the consolidationloan, quickly disappears. And now they have to pay back the loan and the newcredit card debts!With zero balance, or low interest rate introductory offers, the offer ends quicklyand is always replaced by a high interest rate. So once again while apparentlythese are consolidation tactics, in reality they are simply delaying tactics. Oncethe low interest period ends, reality settles back in and the debtor goes shoppingfor yet a new card or offer.However, pretty soon they have run out of options. Of course by this stage theypossess extensive debts across a wide range of platforms, from credit card debts toconsolidation loans to overdraft facilities and so on. Once they reach the end oftheir credit options they are left in the lurch not knowing how to pay back theirdebts!Importantly, with all of these apparent debt consolidation tactics, the end result isthat they only bring on more debt and drag out the repayment period!While credit card debt consolidation is a good idea, the only sane way to do so is insuch a way that it involves responsibility on your part, whereby you understandthat the process of adding new debts must come to a standstill. There has to be astrategic effort made to clear the credit card debts once and for all.For most debtors this option, to consolidate credit card debt, will involve signingup with a debt relief company. However, for some debtors it will involve themnegotiating directly with their creditors. Both credit card debt options are good, aslong as you take the time out to examine which of these credit card debtconsolidation options is right option for you! The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org