By going through bad credit debt consolidation you could end up paying off credit card debts much quicker. It is important to understand that those who have several credit cards with high interest rates will benefit from debt consolidation. If you have just a few credit cards that are not high interest rate cards you will probably not benefit from consolidating your debt.
If you are in a position where you only have a few credit cards and they do not have an interest-rate above 15% then it would be wise to use the extra money you have to pay on these debts rather than to pay for debt consolidation. Debt consolidation works much better for those with several lines of credit that are considered high interest. At the present time, the average number of credit cards an American household has eight. If you currently have eight credit cards you know just how difficult it can be to make sure these bills are paid on time and in full. If you have missed a payment in the last few years your interest rate has drastically increased.
With the credit market greatly struggling over the last few years you have probably seen your interest-rate increase a great deal by missing any payments. Some credit cardholders have even stated their credit card interest rate has went from 2.99% all the way up to 25.99% by missing one monthly payment.
By consolidating all of your debt it is very likely that you will not only avoid missing payments but you are also going to find a lower overall interest-rate. By combining all of your debt into one lump sum you’re going to find that the interest rate is much lower for all of your credit cards combined.
No comments:
Post a Comment