When you look at the financial situation of most families who
are struggling to make ends meet in today’s economy, you will find that most of
them are swamped with high-interest debt. This debt eats away a good portion of
their monthly income by way of interest payments, and money spent on interest
payments is money wasted. It serves no purpose and does nothing to provide a
higher quality of life for the family.
Sadly, though, once families get into a cycle of carrying high balances on their
credit cards, it is extremely difficult to turn things around and get those
credit cards paid off. Here’s why: most credit card companies charge a minimum
balance that consists of the finance charges for the month and only 1 percent of
the principle balance.
That means that if you can only make your minimum payments each month, your
payments are eaten up by interest and are doing virtually nothing to bring down
your balance. This sets you up for another high-interest payment yet again the
next month. As you can see, if nothing is done to stop this cycle, you could end
up paying off your credit cards over the next 30 years and spend
tens-of-thousands more than the principle amount that you charged on them.
One of the best and easiest ways to stop this trend is through debt
consolidation. Not only does debt consolidation stop your high-interest payments
for good, it also lowers the amount of money that you owe out every month. Less
interest paid and less principle paid equals more money in your pocket each
month, and that does a lot for your family’s quality of life.
After consolidating your debts, you will no longer have to wonder where you are
going to get the money to pay your staggering monthly bills. You will pay one
lower bill and see your balance decrease a great deal faster than if you tried
to pay each bill off individually.
And the drastically lower interest rate of your consolidation loan means that
you will not waste any more money on high-interest payments. The money saved in
interest payments alone could save you thousands of dollars. It’s your
hard-earned money. Why not put it to use where it does the most good: in your
family’s bank account?