Credit card interest rates on average are for most consumers somewhere between
21 and 30 percent depending on the cardholder agreement. These rates can be
devastating if you’re one of the millions who can only pay the minimum balance
due on their high-interest debt each month.
The truth is that high-interest debt like that associated with credit cards can
be a vicious, money-hungry sink hole that is very hard to climb out of once you
realize that you’re in over your head. The reason why this is so is that most
credit card companies only include as little as 1 percent of your principle debt
on your monthly payment; the rest and bulk of your payment goes to pay the
With payments hovering around $50, you may feel like you don’t owe that much,
but you could really spend tens-of-thousands of dollars paying off an
unsubstantial debt if you only pay your minimum balance each month. And this
dire set of circumstances can be compounded if you have more than one
high-interest debt that you are trying to pay off.
But what can you do if you do not have enough money to pay off your
high-interest debt quickly to avoid unnecessary finance charges? Does not having
the extra money to put toward your principle balance mean that you have to
suffer through decades of paying high-interest payments?
The answer is no. Many people facing this same situation have put an end to
their high-interest payments and lowered their monthly bills through debt
consolidation. Consolidating your debts brings all of your high-interest bills
together under one payment and dramatically lowers your interest rate. That
means that more of your money goes toward your principle balance, and you get
out of debt quicker.
Not only does debt consolidation lower your interest payment, it also lowers
your principle payment amount as well. That means that you could save hundreds
if not $1,000 or more through a consolidation loan.
And the process is as simple as applying for a loan itself. All you have to do
is shop for the lowest rate, gather up all of your information and apply. Once
approved, you will never have to waste money on high-interest payments again.
How could your family use all of that extra money each month? Would an extra
$500 or so improve your quality of life? Sure, it would. All you have to do is
make the first step.