Pros and cons of consolidating credit card debt

Whether we like to admit it or not we have become a nation of debt junkies.A report issued earlier this year by the US government was that the average credit card debt per household in the United States is ,607. In either event, you would use the money to pay off all of your other debts.

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Pros and cons of consolidating credit card debt msn dating personal

The first of these is that the interest rate on your debt consolidation loan should be lower than the rates of the debts you’re consolidating.

If you have three credit cards with interest rates of 22%, 20% and 18% your interest rate would be 20%.

If you were to transfer the balances on those three cards to a new one with an interest rate of 15% or get a debt consolidation bank loan at 10% and use it to pay off your credit cards, you would definitely improve your situation.

A second factor is to make sure you would reduce the total amount of money you have to pay on your debt each month.

A third factor is that you don’t trade fixed-rate debt for variable-rate debt.

Last modified 08-May-2016 08:39