Consolidating Credit Card DebtThe interest in consolidating credit card debt today is at an all-time high. The U.S. and other world economies find themselves struggling to collectively pull themselves out of economic recession and turmoil. Recent natural disasters have only added more fuel to the fire. Yet when it comes to consolidating credit card debt, what are the issues at play, and what are the best strategies to achieve success?
Federal Reserve figures concerning debt in America change with every season and indeed with every month. But letís take a look at recent numbers. These figures will give impetus to why so many are consolidating credit card debt today:
On average, Americans families, individuals and household now carry an estimated $15,000 in credit card debt. The number of credit cards in circulation today is 620 million. Thatís a lot of plastic. In terms of how these credit cards are distributed, the average consumer holds over 3 cards. The average APR (Annual Percentage Rate) on these credit cards is 13.67%. Now for the whoppers: The total revolving debt held by American consumers is $800 billion, of which 98% is credit card debt. The total consumer debt in America stands at $2.5 trillion (as of this writing).
Indeed, when one steps back and considers these facts and figures, why consolidating credit card debt has become popular is clear: Americans are awash in credit card debt.
Consolidating credit card debt today is easier than ever to both apply for and qualify. Yet there are many variations and subsets to these types of programs. Some consolidating credit card debt programs achieve the goal through the use of loans, while other consolidating credit card debt programs achieve the goal through processes of negotiation. These programs all share the common goal of helping consumers to eliminate multiple credit card debt payments and combine these into one single monthly payment.
As the economic recession continues to roll on, the government and Federal Reserve can only do so much to help the American consumer. Many have asked themselves the question Ė now what? What are ordinary Americans to do who have mortgages and rent to pay, mortgages in many cases for homes that are so-called “under water”. What are Americans to do about credit card debt when they have families to feed and need to fill up the car during this era of skyrocketing gas prices?
Consolidating Credit Card Debt Could HelpSome might be tempted to go deeper into credit card debt by the taking out of consolidation loans to pay off credit card debt. Yet financial experts strongly recommend consumers to beware and be wary of such “solutions”. The good news is that consolidating credit card debt can be accomplished today without the need for personal loans of any kind or risking oneís hard-earned home equity. This consolidating credit card debt can be accomplished in many ways.
One of these methods for consolidating credit card debt is what's known as a balance transfer. In essence, the balance or balances from one or more credit cards is transferred to another credit card. The payoff? Being left with only a single monthly payment to manage each month. This transferring of balances to consolidate credit card debt can be achieved by either opening a new account and then transferring the existing balance(s) to the new credit card, or by transferring existing balances into another already existing account.
Another wildly popular method for consolidating credit card debt is through a credit card debt settlement program. This type of program also provides for the consolidating of credit card debt into a single monthly program payment. Therefore, the choices are many. Speak with a debt counselor today to get started on your way to debt freedom!