September 30, 2009
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News: AmEx Eliminates Gift Card Fees
A few years, if an individual was struggling meeting their financial responsibilities by struggling to keep up with auto loans, mortgage payments, and credit card payments, they had few options. It meant either you lose your car, lose your credit card, or lose your house. Most homeowners accepted loan consolidations which adds to the house debt with a second mortgage. Lenders had little or no empathy for consumers. They were rude and demanding calling home and work with threats to prosecute. Today, however, Americans have more choices. Lender have realized the importance of working with the customers. The big question for most Americans facing financial woes is "Should I, or Shouldn't I?" They're referring to credit card consolidation.
In the wake of a recession and overwhelming credit card debt, debt consolidation has become common. The problem is the everyday consumer doesn't understand it. In fact, the whole debt consolidation business has changed so dramatically, that it has required even retraining members of the financial industry. Basically, for the purposes of credit card debt, the program typically requires turning all the balances of several higher interest rate cards to one lower rate card. If you do your homework, you might even find a 0% interest balance transfer offer. Believe it or not, they do still exist.
Consolidating all your credit card balances to one lower interest rate card will also reduce your monthly payment. This should free some extra cash to further reduce your balance and help you to pay off your debt sooner. Additionally, if your cards carry an annual fee, you'll get rid of that expense when you get rid of the card. Lastly, protect your credit history. Late payments can damage your good credit score quicker than anything else. You want to make sure you are in a good bargaining position if you look to buy a new house, car, or fund your child's education. Be responsible and show lenders you are worth the risk.