Credit card consolidation debt counseling - a look into the history of credit cards and current credit card consolidating options.
Diners Club released the first credit card in 1950 and since then credit cards have transformed the purchasing experience for most people.
The Diners Club credit card gave consumers limited credit that, often times, surpassed the personal savings of participants. It allowed them to buy items they usually could not afford if they were to make a straight cash purchase. It also provided the convenience and protection of not having to carry large amounts of cash.
Currently, on average, American households possess 4 credit cards or a total of 13 payment cards if debit cards and store cards are included. There are, actually, 1.3 billion payment cards of assorted types in circulation in the United States. But, if you think that credit cards have made the lives of modern American consumers easier, you may be wrong...
Statistics show that the average credit card debt for each household in the U.S. is $4,800 per month. Also, there were 1.3 million credit card holders pronouncing bankruptcy in the year 2003.
And if you currently consider yourself unaffected by credit card debt, then consider this: upon retirement, most Americans can only look forward to getting about 37% percent of their annual retirement income due to prior debt payment. This will leave many people depending on the government, family and charity for financial survival.
These are some scary realities. So before you find yourself in a position of financial uncertainty, it might be wise to evaluate your spending and current credit card debt.
If your credit card debt surpasses what seems to be a reasonable level, you may want to take into account the
debt consolidation
solution available to you.
So what is credit card debt consolidation?
In summary, credit card consolidation is taking all your credit card payments and combining them into one monthly payment. This way, you don�t have to worry about organizing the payments individually. In addition to this advantage, it may also provide you with the following benefits:
- Decrease interest payments
- Waive late and overtime fees
- Reduced monthly payments
- Debt relief in a shorter time
- Credit improvement
- Save more money overall
There are actually two major types of credit card debt
consolidation...
You may want to consider a Credit
Counseling and debt consolidation firm. They assist consumers by consolidating all their monthly payments into one single payment and then dispersing this to the creditors on behalf of the consumers.
The other type is through a home equity loan or other secured loan. This is done by exchanging an unsecured debt (such as credit card debt) for a secured debt (a debt backed by specific assets such as real estate).
Now, Credit card consolidation debt counseling isn�t a magic balm that will drive all your credit card debt misery away. But, it will make paying all your debt easier and could save you money in the long run. Certainly an option worth considering...
Please see my Debt Consolidation Agencies Review
page to read about the company that I personally used and highly recommend for debt
consolidation/debt settlement.
