The average American has an average of 3 credit cards, according to Experian's 11th Annual State of Credit Report. Many people have credit cards because these pieces of plastic are convenient payment options that enable them to shop effortlessly. With these cards, you can buy them at the moment and pay later in installments. Here are a few tips for credit card debt consolidating.
While having multiple credit cards helps you afford your everyday purchases, their convenience can also encourage a detrimental habit of excessive shopping. This unhealthy habit has brought about financial disaster for many individuals and families, who accumulate a high amount of debt and mess up their credit scores.
A recent report reveals that the average household credit card debt stands at $5,315. If you have multiple credit cards and would like to escape the dark cloud of debt hovering over your head, there's a way that promises a happy ending: consolidating credit card debt.
Debt consolidation simply means the act of taking out a new loan to pay off other debts. Therefore, credit card debt consolidation is the act of taking out a loan large enough to pay off all your credit card debts.
What do I stand to gain by consolidating my credit card debt? You ask. Well, this is a sensible financial strategy that will roll your multiple credit card debts with different payments, due dates, and interest rates into a single payment. Consequently, you will be able to calculate the installments easily, pay off your debt in a timely manner, and improve your credit score.