If you are struggling with credit card debt, you are not the only one doing so. There are solutions to your problem. Not only are you not alone in this, you are actually a part of the majority of the debt-carrying population in the United States. We live in a world where carrying multiple credit card balances is considered to be normal. If you are still trying to wrap your head around this financial reality, here are some more facts to make it a bit easier for you. There are a number of different studies that showed that the average American household is carrying more than $15,000 in credit card debt. While this may seem like a shocking news, it really is not.
The economic environment and the way people adjust to it
It is no secret that we live in a rather unstable economic environment. Living costs are on the rise, while the average level of income stays the same. This imbalance can only lead to one thing and that is debt. Whether it is credit card balance, student loan debt or a personal loan when your income is less than your expenses, you cannot really avoid going in debt. That is, of course, one way to look at the financial situation. The other way is to look it from a personal, perspective and to analyze the mistakes that people make that get them into such uncomfortable financial situations. The truth is that there are many people who are doing a pretty poor job at managing their finances. If you are constantly spending more than what you have if you are spending money for things that you do not actually need or afford, then it may not be possible for you to sustain a stable financial life.
Recognizing the severity of the issue
You can keep on adding more credit card balances on your plate up to a certain point. At that certain point, you would have to face the reality and severity of your situation. Once you are ready to put an end to your financial misery and regain control of your finances, it is time to take action and find a solution for your problem.
What are the solutions for paying off multiple credit card balances?
If you’re serious about getting rid of your various credit card balances, there are many ways that you can do that.
- The first thing you need to understand is that there is no single quick fix method that can get you out of your financial trouble in a blink of an eye. If you want to get rid of your multiple credit card debts, you would need to work hard towards reaching that goal.
- The second thing that you should keep in mind is that the specifics of every person’s financial situation are different. That basically means that each person’s financial situation is going to require different things, different financial methods, and tools. So if you have already tried out some method for repaying multiple credit card balances and it has not worked for you, it might have been the wrong method to start with. You may see some financial tools bringing great benefits to someone’s struggle with credit card debt. However, that does not mean that these tools will have the same effect on your specific situation. Understanding the uniqueness of your situation and doing all that you can to review the specifics of your financial situation is going to be key in finding your way out of debt.
With all that being said, there is a method for paying off a number of different credit card balances that is often a go-to choice for many consumers who are struggling with such financial issues. That method is called credit card debt consolidation.
How to consolidate credit card debt
Credit card debt consolidation, like most types of debt consolidation, revolves around the idea of combining multiple bills into a single monthly payment. In the case of credit card debts, you would be combining all your balances into a single monthly payment. That can be achieved in different ways. It can be achieved by taking out a new loan or by transferring your credit card balances onto a single credit card. The goal of credit card debt consolidation is to improve your chances of paying off your balances by lowering your interest rate, enabling you to focus on a single monthly payment instead of having to keep track of various bills on different accounts, and to reduce the overall amount of money that you spend on your credit card balances repayments each month. Again, this is the goal of any type of consolidation, however, that does not mean that you will 100% get these benefits.
Choosing the right loan lender
It is very important to pick the right loan lending company for the job. Nowadays, there are many different private loan lending and credit card companies. You need to spend as much time as it is needed to pick the loan lending company that is best suited to meet your needs. There are many companies out there that are advertising false terms for their services and if you are not careful, consolidating your credit card balances with such companies may cost you more money compared to if you never consolidate your multiple bills. So be sure to do proper research and read all the details in your consolidation contract.
How do credit card balance transfers work?
The idea of credit card balance transfer is to shuffle all your existing credit card balances into a single, brand new credit card with much better terms. Usually, you should look for a company that is offering a 0% interest rate credit card balance transfer. That means that you would be able to transfer all of your current credit card balances with different interest rates into this single 0% interest rate credit card. However, you need to keep in mind that this new card will not stay at 0% interest rate all the time. The offer would only be active for a limited period of time, after which the interest rate will go up. So it is very important to find out exactly how long this period is going to last and what your interest rate is going to be once the period is over. If your 0% interest rate period is rather short, and you do not really get a lower interest rate after that, you may want to look for another company.