There is a commercial on TV these days stating that the average American has eight credit cards. Eight! Even if this commercial is wildly over estimating, three is too many. What on earth would you need three credit cards for? Two, OK, one for personal use and one for business and/or tax deductible things. The only reason a person would have so many credit cards is simply because they are living way beyond their means. The time for a credit card consolidation loan is right now, before its too late.
Bankruptcy is not what it used to be. A few years back you could file for a chapter 11 or chapter 13 and eradicate all your credit card debt in one swoop. This is no longer possible. If you file for bankruptcy now you can negotiate lower settlement balances but you still have to pay. Needless to say, bankruptcy does not look good to creditors and it will take extraordinary efforts to clear it up before you can consider any other type of loan be it a mortgage or a personal loan. The logical way to go about this process is to consolidate credit card debts before bankruptcy becomes necessary.
Out of the growing demand for these types of loans an army of finance companies, debt consolidation companies, debt pooling and other similar financial services have been on the rise. A credit card consolidation loan is basically a personal loan that is directly applied to your credit card balances. The lender pays them off in full. You then continue paying but to only one creditor.
These companies can negotiate deals with the credit card companies and then pass lower rates along to you. Payments are also spread out over a greater span of time which results in lower monthly payments for you. Because these financing companies work in volumes and pay off debts in their entirity, interest rates associated with consolidation loans are lowered by an average of 5% to 12%.
The added stress of being in debt effects every aspect of your life in ways that are obvious and other ways that are not so obvious. Getting out of credit card debt should be a priority, the longer it is put off the larger the burden becomes. Turning to a credit card consolidation loan is a logical conclusion after considering the alternatives. Before you think about bankruptcy, consider debt consolidation first and save your money, and your peace of mind.