Credit card debt is an issue for individuals and families around the country. Research shows that the country’s credit card debt balance experienced a 75% increase between 1997 and 2007. Trying to get out of debt can be a stressful, complicated, and overwhelming experience. That is why credit card consolidation is a good choice for anyone feeling drowned by their debt. Here is a closer look at what credit card consolidation is:
- Credit card consolidation offers a solution for people with credit card debt
Credit cards can offer security, but they can also make it easier to spend money you do not have on items you do not need. Credit cards are also commonly used to pay bills and other regular expenses, making them an important part of many people’s finances. However, this reliance is also why so many people are currently struggling with credit card debt on multiple credit cards.
- Credit card consolidation offers a way to start handling your debt
With this process, a debtor takes out one loan to pay off credit card debt. First, the debtor must visit a financial institution to learn about the loan options that are available to him. Depending on personal finances and credit history, a debtor will either qualify for a secured loan or an unsecured loan. After getting the loan, the debtor will use the money to pay off all debts. They will then focus on gradually paying back the loan.
- Credit card consolidation offers a number of benefits
First, debtors will no longer have to worry or stress about paying of all of their separate debts. Another benefit is only paying one loan bill each month instead of multiple credit card bills. This can greatly reduce the stress and anxiety that are commonly associated with multiple credit card payments.
Learn more about credit card consolidation and personal loans by contacting the team here at Jeanne D’Arc Credit Union. Our Lowell credit union can help you get on the right track to eliminating debt. Visit us online or call us at (978) 452-5001 for more information.