Though many consumers have cut back on how many purchases they place on their credit cards, many others still need credit card debt consolidation help. According to a recent story by U.S. News & World Report, the average household with credit card debt has $7,000 of it. It’s not easy to consolidation credit card debt. And it’s especially difficult if that debt is high and the economy is weak. After all, the national unemployment rate hasn’t budged from its perch near 10 percent in months. When people are either out of work or worried about losing their jobs, it’s difficult for them to pay off their soaring credit card debts.
Help From Outside Sources
Consumers who do want to bring down their credit card debt have options. They can try to reduce their debt on their own by not putting future purchases on their credit cards and by only buying items that they can afford to pay for in cash. This can be difficult, and requires a real commitment from consumers. It also requires patience. It can take a long time for consumers to pay off their credit card debt. They have to be committed to changing their negative spending habits for the long-term. Consumers who don’t think they can erase their credit card debt on their own, though, can turn to outside help from debt consolidators. These companies will work with consumers to draft credit card debt consolidation loans.
Debt Consolidation Loans
With a debt consolidation loan, a consumer’s debts are all tied into one monthly payment. The goal is to create a payment that consumers can comfortably afford to pay. As long as consumers make this payment on time each month, they’ll gradually pay down their credit card debt. They’ll also keep the collection agency calls at bay. A credit card debt consolidation loan can also help ease the stress that consumers feel when they’re dealing with overwhelming credit card debt.
Credit card debt consolidation does come with its own risks, though. For one thing, debt consolidators often charge high interest rates and origination fees. Secondly, consumers will see their credit scores drop when they take out a debt consolidation loan of any type. It’s up to consumers to do the research necessary to ensure that the debt consolidation loan they take out comes with reasonable rates and fees. Consumers should make sure to request these fees in writing from every debt consolidator they consider. Only by doing this, and taking the time to do their proper research, will consumers boost the odds that they’ll end up with a fair and successful credit card debt consolidation loan.