Consumer debt is rising, and most Americans are struggling just trying to make
ends meet and pay off their high-interest obligations each month. The problem
lies not in their level of income, most consumers facing this situation make
enough money to live decently, but in how much of that income goes toward
unnecessary interest payments each month.
Think about it this way. A credit card with a $2,000 balance and a 29 percent
APR, costs the consumer nearly $50 in interest payments each month. And that’s
only for one card. If you owe more than $2,000 on one or more credit cards, you
could be paying hundreds of dollars each month in interest alone.
Likely, you already realize this, and that is why you are looking for a way out
of debt. The simplest way to stop this cycle of high-interest payments is to pay
off the debt, but that is not an option for most people. C’mon, let’s face it.
If the money was there to pay it, there wouldn’t be any debt.
And paying your monthly minimum payment isn’t going to get you anywhere either.
The truth is that most credit card companies only include 1 percent of your
principle balance on your minimum payment. That means that most of your payment
goes toward interest, and that interest is tacked on yet again the following
So, how do you break the cycle of high-interest debt?
Debt consolidation is
perhaps the only way out for some people facing rising interest costs and
unshrinkable debt. By consolidating your debts you combine all of your
high-interest debts into one loan with a much lower interest rate. A lower
interest rate means that more of your money goes toward your principle balance
and you get out of debt quicker.
Consolidating your debts also lowers your monthly principle payments. Lower
interest and principle payments means that you keep more of your hard-earned
money right where it needs to be: in your pocket.
So, what are you waiting for? The only thing you have to lose is your