Credit Card Consolidation

Today we are going to talk about credit card consolidation debt help or how to get the credit card monkey off your back.

Most Americans and a lot of people around the world have moved to using a credit card for almost all their purchases. My sister uses one for everything because she gets “points” or “rewards” for each dollar she spends on the credit card. But she does something that most people would not think of. She pays off the credit card each month.

Those of you that don’t may be tempted to do a card consolidation credit debt help quick fix. Let’s look at the pros and cons of a consolidation loan for your credit cards.

First the pros…top on the list less monthly payment. If you do a consolidation loan you should lower your payment a lot. Otherwise why do it?

Next on the credit card consolidation list; less interest. Credit card interest is not tax deductable. So it is a huge waste of money and really a great way to make you poor and the credit card company’s rich.

So if you can roll your high interest non tax deductable credit card’s balance to something that is a lower interest tax deductable account…say a line of credit on your house that could be a better plan.

The last reason to get debt consolidation help is to make life easer by having only one payment. You can get in a lot of trouble really quick if you have a whole bunch of credit cards that each have a small balance on them and you start to miss a payment here and there. Those late fees start to add up really quick then the over limit fees start to hit you and it is a slippery slope from there to the poor house.

A con to this strategy is it takes discipline. As soon as you consolidate your credit cards into a home equity line of credit or even one low interest card you will get more applications for credit cards in the mail. Because your monthly payments are lower you may think you can afford another card. This can create a serious problem where you are completely maxed out.

Instead that extra money you were putting toward interest can now go toward principle. Thus allowing the credit card consolidation you just completed to be the most helpful for your financial future

"A man in debt is so far a slave,"
Ralph Waldo Emerson.

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