Credit card consolidation is a way of overcoming your outstanding debts by paying lower interest rates than what you were actually paying.
Many people have at least eight to ten credit cards in their pocket. These credit card holders often misuse the card by making purchases which they cannot afford. They forget that these purchases are to be paid someday with some rate of interest. Pilling of bills get them in situation where they find themselves trapped under a credit debt.
If you are under a burden of credit card debt and want to get rid out of it faster you need to go for credit card consolidation.
What actually does credit car consolidation do?
Consolidation of bills can help a person lower the amount of debt and pay his unsecured credit debt faster. He can take care of his debts by merging all his payments into a single loan at a lower rate of interest that what he was actually paying. If your debt is credit card debt then bill consolidate is probably the best option.
For Instance:
A person who does not undertake credit card consolidation
• Lets say a person has a credit card debt of $1000
• The rate of interest he has to pay is 20%
•This means that at $1000 credit card debt the person has to pay an interest of $200
A person who undertakes credit card consolidation
• He merges his payments to a single loan.
• Let’s say he too has a credit card debt of $1000
• Due to bill consolidation he has to pay an interest rate of 9%
• This means at $1000 credit card debt the person ahs to pay an interest of $90
• This means an annual savings of $110 in interest charges.
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