Times are tough, and they are only going to get tougher if
you believe the dire forecasts as predicted by national economists and financial
planners. And just when you thought that your finances couldn’t get any tighter
than what they are, gas prices soar and it is predicted that the average
family’s heating bill could raise by as much as 71 percent this year. So, what
can a family do to stay afloat during these hard economic times?
If you’re like most American families, you probably carry a good deal of
unsecured, high-interest debt. With average credit card interest rates varying
from approximately 21 percent to 30 percent, it does not take long to figure out
where a lot of your hard earned dollars are being wasted: on interest payments.
The truth is that interest payments can account for hundreds of dollars of your
family’s total income each month. Just think about how much money you spend in
credit card interest alone. Tack onto that amount the interest for your
mortgage, second mortgage, car and other debts and you could be interest poor
before you know it.
But it doesn’t have to be like that. There is an easy way to lower your interest
payments and the amount of money that you pay out each month:
debt consolidaton. When you consolidate
your debts, you combine all of your debt payments into one lower payment and
dramatically lower your interest rates. A lower interest rate means that more of
your money will go to pay off your financial responsibilities and you will be
debt free sooner than you think.
Combining your payments also allows you to reduce the amount of money that you
pay out each month by hundreds of dollars. No more will you have to send out
multiple payments to several different lenders. You can pay everything with one
simple, smaller payment.
How could your family use all of that extra money? Well hopefully you won’t have
to spend it all at the gas pump. Maybe you could take a vacation or get those
house repairs that you couldn’t afford finished. Really, what couldn’t you do
with a few extra hundred dollars a month?