Do you need credit card debt consolidation? When confronted by this question
majority of us will simply say no. But, the stark reality is that more and more
people are consolidating their credit card debts to avoid falling into a debt
trap and tarnish their credit history. What are the indicators that make you a
highly probable candidate to consolidate your credit card debt? Here is a
checklist. If you have any one of these characteristics, get ready to
consolidate your credit card debt.
A purse full of credit cards
Too many credit cards is the first and foremost reason which indicates that
you will require debt consolidation sooner or later. Remember any transaction
done with a credit card is a loan and it has to be repaid with interest. The
larger the number of credit cards the more the loans.
Missing repayment dates frequently
Too many credit cards with varying repayment dates can cause a lot of
confusion. If this makes you miss a repayment date just because of the number of
credit cards, its time to think. Every missed installment increases your debt
burden. A late payment fees along with penalty APRs can make things worse. This
will surely reflect in your credit history.
Large amount of debt
Too many credit cards with small debts, result in one large debt to be repaid
to multiple credit card companies. Since, the person who has to repay all these
little debts each month is you, things become complicated with every increase.
Credit card debt consolidation, clubs these small debts into one large
manageable one and makes things easier for the borrower. Though it is a popular
means to avoid credit card debt, debt consolidation proves beneficial for the
credit card company in terms of money.