Credit Card Debt Consolidation: A Helping Hand For You |
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All right, the annual projections are in for how much debt people are going to incur this holiday season, how much of that they're going to put on their credit cards, and how much they're going to need the help of a credit card debt consolidation of some kind. OK, so that part about the debt consolidation loan isn't actually part of the projections, but after reading the numbers you'll agree that a goodly number of consumers are going to require credit card debt consolidation to handle the mountain of debt they've piled up. This year, the average consumer will spend between $700 and $900, for a total of about $220 billion in holiday spending. About 50% of that, close to $108 billion, is put on a credit card of some sort. While a good number of shoppers, about 60%, set aside money during the year to accommodate this spending spree, thus avoiding additional debt, the remaining 40%, accounting for about $35 billion in spending, will carry their credit card debts for months, unable to pay them off by next Christmas. If fact, about 39% of all consumers, including those that sought credit card debt consolidation help last year, are still trying to pay off last year's holiday spending extravaganza. No a pretty picture is it. Experts say that the typical consumer shouldn't spend more than about 1.5% of their annual gross income; and that comes out to just about $720 for the typical household, earning $48,000 a year. A major problem with credit cards is that they don't feel like real money. Folks are apt to spend about 30% more using a credit card than if they paid cash for everything. It's not because carrying around that must cash would put an unsightly bulge in their pockets either; people are more careful with money than with credit cards. Credit Card Debt Consolidation: The Only Solution What do a lot of these consumers do when they've come down off the holiday season high and taken a look at their credit card balances? Some of then turn to a credit card debt consolidation agency to try to get their financial houses back in order, and that's a tall order indeed. But a credit card debt consolidation company isn't the only way to pay off credit card debts. There is a really good method called accelerated payoff. This is a process where you establish a set amount that you're going to pay each month toward your credit card bills. For this to work you have to really dig deep to come up with the largest figure: forget the mocha lattes and the friendly pint after work with your buds; ignore the lure of the TV commercials. Looking for a Good Credit Card Debt Consolidation Program But if it looks like credit card debt consolidation is the only way you can pay off credit card debts, here are a few pointers to find a credit card debt consolidation agency that's likely to be beneficial rather than cause you more grief than when you started. Look for a credit card debt consolidation company accredited by the Association of Independent Consumer Credit Counseling Agencies, or the National Foundation for Credit Counseling. Your local (state) Consumer Credit Counseling Services company fits into this category. It's less likely that a member of these organizations is going to skip town with your hard earned dollar in its back pocket. Also, make sure that you clearly understand the various services, plans, and programs, offered by the credit card debt consolidation agency, as well as the fees and other charges, and especially who they charge and when. If they take a percentage of your monthly payment as a fee, it should be small: 10% is toward the excessive end of the scale. Above all, once you've established a relationship with whatever credit card debt consolidation agency you've settled on, be sure to keep accurate and complete records of all your interactions with them, including all phone calls. You never know when that information may be useful. |
