Page 1 of 3About one half of all American households are carrying credit card debt, with an average balance above ,000.
If you’re one of them, you’re probably paying way too much interest for your debt than you should.
Fact: All credit cards are considered revolving debt – i.e. This may mean you have to pay the whole balance off every month (like what you see with an Am Ex card) or that you pay a percentage of balance plus added interest (like what you see with most Visa and Master Card accounts).
But in either case, you can’t always plan ahead for how much income your credit card payments will take up each month.
Debt consolidation is a means of debt refinancing that involves taking out a new loan to pay off other loans and credit card debt.
People traditionally use personal loans, low-interest balance transfer credit cards, and debt management plans for debt consolidation.
You’ll find out the best places to apply for a personal loan and how consolidating affects your credit.
Credit card debt has a way of causing problems for your financial outlook.
Unlike other debts that have fixed payments you can plan ahead for in your budget, the monthly bills on your credit cards vary depending on how much you owe.
Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones.
In effect, multiple debts are combined into a single, larger piece of debt, usually with more favorable pay-off terms: a lower interest rate, lower monthly payment or both.