Clearing Credit Card Debt

On average we carry up to 3 credit cards and typically run a balance on each card i.e. we don’t pay off the card fully. As each card has its own interest rates this can result in some very big charges every month. Of course this is exactly what the credit card companies like but of course you are the one suffering, or at least your bank balance is!

So, every month you get your credit card statement and wonder how you can get the balance back down to zero. Of course you pay off some of the debt but for some reason it never seems to get any lower. Sound familiar?

Here’s what generally happens: The credit card companies give you an introductory interest rate and then over time the interest rate goes back to the normal rate. The companies then increase the rates every year or two and each hike in interest rate adds precious £’s to your balance each month. This is how these guys make money. Of course the larger the amount of money the more interest you pay. And, then you have store cards which carry even higher interest rates. These can be at 3-5% more than your normal credit card.

And before you know it you are carrying around £700 every month on all your credit cards. Does this sound like much? That’s because it is. And it’s easy to lose track of how much you owe when you have small amounts spread across several cards.

Now let’s assume that each card charges at least 18% APR annually, and you only make a small payment towards the balance each month. After all, your bills are then paid, right? Correct… sort of. Just get ready to repeat that process for the next 10 years (plus pay over £1,000 in interest!). And the bottom line is, you’re really taking one step forward and then two steps back.

Wipe Away High Interest with Debt Consolidation

A debt consolidation loan is a quick way to pay off all your credit cards debts in one swipe. Of course it’s not always clever to borrow to get yourself out of debt but a debt consolidation loan can help you lock in lower interest rates.

By taking out one of these loans it will give you financial breathing space. Secondly, since all of your outstanding debt will be combined into one, easy-to-remember payment, you’ll immediately reduce the amount of bills piling up on your doormat. Fewer bills mean less of a chance to incur late payment charges, which inevitably happens if you forget to send off payment for one of your cards. You know what I mean!

Conclusion

So, the final piece of advice is not to hang around. Do something right now! Every day you put this off the charges get higher and higher…. And higher! Although credit card companies give you an initial interest rate quote that once you go over the grace repayment period you will be paying that interest rate. Get a grip of your debt now and find yourself a debt consolidation loan online and give yourself peace of mind.