If you’re like most North American citizen today, you go straight through life carrying a fair whole of credit card debt. And if you’re like most North American people, you’re okay with that. 0 per month in repayments is fine, even if you’re paying that much on three separate cards. It’s doable – you can afford it, if you have to. But here’s the thing – if you couple your credit card debt, you don’t have to.
Do the math with me here: You have a Mastercard, a Visa, a inspect card and an American Express. Let’s say with each of them you’re supposed to pay 12% interest per year, (which would be generous – many cards charge as high as 29% these days!) and the monthly minimum us approximately 2% of your balance that has to be paid back each month. Assuming you owe 00 on each card, that’s a minimum cost on each card, or 0 per month – before interest is even factored into your reimbursement equation. But if you’re paying back per month on a card that you owe 00 on which charges 12% interest per year, you’re paying 0 – or over half your repayments – in nothing more than interest!
Consolidate Payday Loans
Now think the options when you consolidate your credit card. First of all, you could take out a new credit card and put the balance of all those other credit cards on it. Meaning, you take the debt from your Visa, Mastercard, inspect and AmEx, and you pay it all off using your new card.
Because most credit card offers will allow you to ‘transfer your balance’ from an additional one card to theirs for 0% interest, you might not sacrifice your monthly minimum cost each month, but you will sacrifice your interest rate significantly, thus paying your debt off much sooner. Consolidation of credit card debt can sacrifice your payments by hundreds of dollars a year!
Another way to consolidate your credit cards and lower your whole owing, is to take out a consolidation loan with your bank. Because credit card interest can be up to 29% (even more in some states) without it being called ‘loan sharking’, many consumers get trapped in a debt cycle that seems unending. Payday loans are no help – they can be even worse, in fact. But a consolidation loan with a bank can see you pay all of those debts off at an interest rate of 5 or 6% - saving you a fortune on your payments.
But maybe your credit rating is awful and you don’t think you can get a consolidation loan, or a credit card to couple your old credit card debt – have no fear! There is a multitude of lending institutions whose job it is to find financing for citizen just like you. Granted, the interest rates will be higher than for man with a good credit background, but it will still be significantly lower than what you’ll pay in credit card fees, and as you pay that loan back, your credit score will quickly begin to heal.
There’s just no good surmise to carry a huge credit card burden these days, and it’s in general out of apathy or ignorance that so many citizen do. If you’re in need of data to help get out of the burden of credit card debt [http://www.trentontelegraph.com/category/finance-online], there are many institutions and debt counseling organizations that can help you get out from under the unending pressure of debt. In fact, many of them can negotiate a better rate with the banks and credit card fellowships you own money to, to ensure that you can pay back what you owe without living in poverty.
Credit cards are a handy tool, but the time is right for you to consolidate your credit card loan payments and start living well once more.
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