The amount of consumer debt in America has catapulted to all-time highs. Studies have shown that the average adult U.S. citizen has five to six credit cards, many of which boast incredibly high annual interest rates. Liquid cash is one of the most lucrative elements of a capitalist society, for it gives people the ability to make purchases without paying up front. The excitement and financial security-inducing effects of receiving a “you have been pre-approved for $5,000) letter have caused many people in this country to spiral out of control economically.
What consumer debt consolidation can do for you
When you have reached the point where your monthly minimum payments are just covering the interest charged on your accounts, and then all told you will never be out of debt. All you are really doing is paying hundreds to thousands of dollars extra each year on a purchase worth a fraction of the price.
Do not get us wrong; when used wisely, credit cards are a sound way to build a strong financial portfolio and establish positive creditworthiness. The problem is, however, this is precisely what few Americans do. Fortunately, plenty of resources are available to help you break free from the debt cycle, one of which is consolidation.
Consolidation is a fancy term for combining all of your individual credit debts into one, manageable account. Many companies offer qualifying applicants (contingent on income level and other factors) much lower interest rates and affordable payment plans.
Before anything else, you will want to obtain a copy of your credit report from one of the three credit bureaus (or all three), which are Experian, Transunion, and Equifax. This will give you a clear idea of how much debt you owe as well as if there any duplicated or fraudulent accounts.
When it comes to consolidating, you can apply for a lower-interest, balance transfer card, secure a loan through a local or online lender (not applicable in all states), or get in touch with a credit counseling agency. If you qualify, they will work with you to formulate a customizable debt management plan. Take control of your credit today and get on the road to financial freedom!