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How to Consolidate your credit card debt and Save Money

October 15th 2005

How to Consolidate your credit card debt and Save Money

Credit Card Consolidation

With the popularity of plastic money these days, credit cards are gaining immense importance. With growing usage of credit card the number of people in debt and the amount of debt for each of them is also increasing at a fast pace. Almost every household in the US today is undergoing the threats of debt problems. People undergoing credit card debts should ideally opt for debt

consolidation in order to lead a debt free life. In the US more than half of the population has an average of $8000 debts, only because of the usage of credit cards.

You must be eager to know:

How is the process of debt consolidation beneficial to settle credit card debts?

How is it useful to consolidate my credit card debts?

 
 

A credit card debt consolidation loan can be a resource to consolidate the outstanding balances on your cards into one single loan. They can also be transferred to one single card that has a lower interest rate than the ones you are currently paying. The path to savings should be very cautiously chalked out and one needs to make calculated moves all the time. It is advisable to opt for credit cards with low interest rates rather than paying high interest rates for some credit cards. Calculate the interest on your credit card debts and transfer it accordingly. That is the ideal way to consolidate your credit card debts! 

Let's say you have $100 in outstanding credit card debt and the average annual percentage rate (APR) on that card is 18 %. If the outstanding balance remains at $100 then over the course of a year you would pay approximately $18 in interest charges alone. If you consolidate your credit card debt into a single loan with a lower interest rate or if you do a balance transfer onto a credit card with a low interest rate you would save a significant amount of money.

If the new loan or credit card have a 9% APR then you would save roughly $10 in interest charges over the course of that same year. If you save $10 for a debt of $100, then think about a debt of $10,000. This trick will save you $1,000 over the course of that same year. Just think of $100,000 debts; you can save $10,000. And this amount of $10,000 can be used to repay some of your debts.

Life becomes easy with simple calculations and cautious moves.  Consolidating your debt is perhaps the fastest, safest and best way today to get rid of your financial obligations.

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By Janet Williams
Janet is a contributing writer to debtconsolidationcare.com and is currently working on a special section in the site called do it yourself where you can eliminate your debts and become debt free. If you are undergoing major debt problems feel free to contact us. Our experts will help you to consolidate your debts and restore your financial position.  Fill our free membership form to view all the alternatives. With debt consolidation we are here to consolidate all your financial loans in a single monthly payment. We help you in your journey towards being debt free. You can take a look at this article: credit counseling.

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Copyright 2005 Best Syndication                                     Last Updated Saturday, July 10, 2010 09:47 PM