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by Zulika van Heerden
It may seem on the outset that having a
credit card is the answer to your money
woes and to some extent, if you know how
to be a responsible credit card holder,
it could really save you from your money
problems once in awhile, especially for
emergencies.
However, if we become addicted to
swiping, we could very well end up
paying our debts until our last breath
and ending up with no savings at all
because of all the payments we have to
make.
Unpaid Bills, Mounting Debt
If you miss a single payment on your
credit card bill, expect a sky-high
penalty rate that will definitely add up
to your regular monthly card bills. Now
if you keep this up, you know what
happens next – insurmountable bills that
keep piling up and before you know it,
you’re in way over your head and you
can’t go back.
Consequently, you end up putting all
your hard-earned cash to your monthly
bills in the hopes that they will at
least decrease as you make each payment.
However, you’ll notice that this is not
the case because what you’re actually
paying for is only the interest that
your credit company slapped on you when
you missed one payment.
It sounds a little harsh and cold, but
that is the reality of owning credit
cards.
Debt Consolidation
Financial institutions understand your
dilemma and they are more than willing
to sit down with you to discuss your
options. While this may sound promising
and it may seem like Manna from Heaven,
you have to remember that while you are
paying only one monthly bill for all
your card bills once you’ve consolidated
your debt, you could end up losing your
home, your car or whatever else you put
in as collateral once you miss your
payments.
You should watch out for hidden charges
as some financial institutions take
advantage of your vulnerability and
press you to immediately sign and
agreement with them without fully
explaining what’s in it for you –
especially the actual interest rates and
other charges.
So unless you are sure that you can make
this new payment and you are comfortable
with the consolidated payment scheme, do
not go into any agreement with debt
consolidation companies. While it does
sound like it is the answer to your
problems, you can get more indebted if
you can’t handle your payments.
The best way to check if debt
consolidation will work for you is to
thoroughly check your monthly income
against your regular expenditures and
see if you can afford the new payment
plan. Otherwise, you’ll just have to
bear it and grin until your debt is paid
– the usual way. The hard way could
also be a good lesson for you to never
rely on your credit cards again to pay
for emergencies or otherwise.
For more on debt consolidation see
below :
-Credit
Card Debt Secrets
-Steps
to Eliminte Credit Card Debt
-Debt
Free Living
-Lowering
Your Debt For Life
-Are
your debts keeping you awake at night?
To apply for a debt consolidation loan
you will have to fill out a short
application form. You will then receive
a FREE quote from well established,
nationally recognized lenders. You do
not need to decide now whether the debt
consolidation loan is for you.
Just apply and compare the repayments to
your current situation. There is no
obligation on your part. If you decide
that it is not for you, you simply do
not have to accept the offer. You have
nothing to lose and everything to gain.
20 Second Application
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