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Is a credit card consolidation loan for me

Credit cards can be really convenient, if you only have one credit card then keeping track of how your using it can be pretty straight forward, you’ve only got the one card to manage but surprisingly a lot of people still can’t control their credit card use and before you know it, all of those bits and bobs you purchased on your credit card have added up and before you know it, you’ve got yourself into credit card debt. If you have found yourself struggling to make credit card repayments, I would strongly advise taking a look at your finances, what you’re spending your money on and ultimately, how you managed to get yourself into debt.

Understanding were you went wrong is crucial if you want to stay debt free, it’s all too common for someone to get out of debt and weeks later, they’re back to using their credit card and spending money which they don’t have and then people wonder why they’re in a vicious circle of debt, if you have multiple credit cards managing what your spending can become even more confusing.

What can you do when you find yourself in credit card debt? The first thing you need to do is set a budget for your spending, you are in debt, you don’t have money, you need to manage it carefully, keep track of your finances and work out exactly how much debt you are in.

If you have multiple credit cards then you can find yourself in a lot more debt than you originally thought, for most people when they find themselves in credit card debt  taking out a consolidation loan may be the best solution to help you get out of debt and stay debt free.

Combining all of your credit card debts into a single loan really does simplify the debt process, if you have more than one credit card then you’ll know that you’re making more than one monthly repayment, trying to make multiple monthly repayments can be tricky and usually it leaves you with no money so your only option is to borrow more or go hungry, not a nice situation at all.

Consolidation loans are much easier to manage, keep track of and repay, instead of having multiple repayments to pay back the various creditors you owe, you only have one monthly repayment to make. The interest rate of a consolidation loan is much less of a credit card, make sure you do your research and find the best interest rate.

You’ll typically notice that you have to pay a lot less back per month when you’ve combined multiple debts into one, reducing the amount of money you repay each month does mean that you’ll be repaying the debt for a longer period of time, but credit card consolidation loans help you get on the path to debt freedom. Not only do you end up a smaller amount of debt back per month, you’ll also find the interest rate on a consolidation loan is almost half the average interest rate of a credit card.

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June 12, 2015