Most people have credit cards, it is a fact of life, and is in fact almost a requirement to function in today's world. But at the same time, many people view credit cards as "free money", and instead of differentiating carefully between "want" and "need" when they are considering purchasing something, that line starts to get very hazy and unclear. Frequently an item that really belongs in the "want" category is moved to the "need" category by the various forms of mental justification (like "I deserve this") that people play on themselves. |
The problem comes in when financially, you should have not purchased that item because it is just beyond your financial abilities to repay, even at high interest rates. Then you use another credit card to do the same thing, or perhaps to do a cash advance to allow you enough money to make payments on the first credit card. Then the same thing happens again, so you repeat the process with a third credit card. It does not take too long before your financial house of cards starts to tumble, and you have effectively run out of Peters to pay Paul with.
This is where credit card debt consolidation comes up. It is not something you should be ashamed of or embarrassed about because (hopefully) you have learned some lessons along the route that got you to this point. It is not a last resort option, but rather should be seen as a very viable option for people who have gotten themselves into too much financial difficulty without seeing it coming. Other circumstances that could not be foreseen may have also brought this on, such as a layoff from a job, unexpected medical expenses, or a variety of other things outside of financial mismanagement.
The process of credit card debt consolidation is pretty straight forward. What happens is that you get a single loan for all your credit card debt, and as a result, your credit card debt is paid on time and you only have a single loan to make payments on. Most times the payment on that single loan is much less than the sum total you were paying on your credit cards, so this allows you some financial breathing room while you get things put back together.
The trick here is that your credit cards are not wiped clean with a zero balance. That would be far too much temptation for most people, since then they could go on a spending spree and get themselves into trouble all over again. What happens is that your debt consolidation loan is used to make payments to your credit card lenders, This is done by the debt consolidation company on your behalf, and they use the funds that you have paid them to make those payments.
So why is this beneficial for you? Because your overall monthly expenditure for all your credit cards is less, which means you have more money left over in your household budget for the things you need. You did not need to file bankruptcy, which should be considered only as a last resort option, since bankruptcy will leave a huge negative mark on your credit report for 7 or more years. Your creditors are being paid on time, so your credit score does not continue a downward spiral.
Consider a credit card debt consolidation loan to get you out of the financial bind you have gotten yourself into. Make sure you have learned something from your financial experience and use this opportunity to make things right and get back on the right track. For more insights and additional information about Credit Card Debt Consolidation as well as getting a free debt consolidation quote, please visit our web site at http://www.debtconsolidationstrategies.com
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