Debt consolidation ? More Options for Reducing Credit Card Costs

Borrowing money against your credit cards has always been among the most expensive ways to borrow money, and when you fail to pay your bill in full each month, borrowing is exactly what you're doing. You're not alone; the average American household now carries more than $8000 in credit card debt. It's easier to accumulate credit card debt than other types of debt for the following reasons:

  • They're easy to use. It's far easier to borrow spend money on a credit card, even thousands of dollars at a time, than it is to go to the bank and secure a loan. Convenience can easily lead to overindulgence.


  • The interest rates are higher than for other types of debt. The interest rate on your mortgage may be 6%. The interest rate on your credit card may be 25%. That adds up in a hurry, especially if you are carrying a balance.


  • There is no set repayment schedule requiring you to pay back a set amount each month. The only requirement is that you pay at least 2% of your outstanding balance. Many people pay exactly that, and no more, causing the interest to accumulate quickly


  • Credit card lenders tend not to be very forgiving. If you make a late payment, you could end up with a late fee of as much as $39 in addition to having your interest rate increase.


  • Many credit cards come with annual fees, which can add to your debt, especially if you don't pay them in full. Then you end up paying interest on the annual fee!
    • There are number of solutions available. All they require is a bit of time and diligence. Besides shopping around for the card with the best rate and doing a bit of debt consolidation to place all of your credit card debt on the lowest interest card you own, you might also consider the following:

  • Ask your lender to waive your annual fee. The competitive nature of the credit card business means that your lender will often waive these fees just for the asking. They would usually rather waive your fee rather than lose you as a customer. It costs nothing to ask. If they do waive the fee, add the fee amount to your next payment.


  • Pay more than the monthly minimum payment. The minimum payment may soon go to 4%, which may place many borrowers who currently pay only the 2% minimum in a bind. Get in the habit of paying more each month, or pay your bill in full, if you can.


  • Did you get a large tax refund? Send it to your credit card company. Sure, it would be nice to spend it on a new TV, but if you spend it on a TV while carrying a balance on your credit card at 25%, you are effectively paying 25% interest on your TV.
  • Use your debit card instead of a credit card. They have the same convenience and ease of use, but few of the drawbacks.


    • Paying off the national average of $8000 in credit card debt can take a lifetime if you only make the minimum payments. That is a trap that you should make a concerted effort to avoid and by taking a few simple steps, you can keep your debt to a minimum.

    ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.net, a site devoted to information regarding home equity loans.

    In The News:

    pen paper and inkwell


    cat break through


    Reducing Credit Card Debt

    One of the easiest "things" that can happen in life... Read More

    Online Debt Consolidation ? Devising Newer Ways for Changing Consumer Trends

    Consumers today are getting wiser by the day. They are... Read More

    Is A Debt Consolidation Loan Your Best Option?

    For many people the lure of easy credit has taken... Read More

    Debt Consolidation -- Choose Your Credit Counselor Carefully

    Recently passed by Congress, the Bankruptcy Abuse Prevention and Consumer... Read More

    Debt Consolidation ? Options for Reducing Your Debt

    Studies show that Americans are now saving less than ever... Read More

    Debt Consolidation Refinance Loans - A Great Way To Lower Your Bills

    For millions of homeowners, refinancing is the perfect way to... Read More

    Cutting Your Monthly Outgoing With Debt Consolidation

    With consumer debt on the rise, many people have found... Read More

    Avoid Bankruptcy

    The first but definitely not the easiest thought that comes... Read More

    Tracking Down Cheap Debt Consolidation Loans

    In the modern world of expensive living and high interest... Read More

    Is Consolidating Loans Right For You?

    Consolidating loans makes sense but only if you can pay... Read More

    Debt Consolidation Benefits

    If you've ever been in a situation where you needed... Read More

    Debt Consolidation Confusion

    Learning about debt consolidation can be quite a confusing venture... Read More

    How To Get Rid Of Debt Problems Step 4 -- How To Get Interest On Your Debts Frozen

    The first thing to understand is that there is categorically... Read More

    Debt Consolidation Loan

    Debt Consolidation of Different LoansDebt consolidation refers to the restructuring... Read More

    Vultures and Victims

    Has anyone noticed how many loan companies now fill up... Read More

    Why Choose a Debt Consolidation Loan?

    Are you wondering why choose a debt consolidation loan? If... Read More

    What is the Difference Between Unsecured and Secured Debt?

    A secured debt is a debt in which the creditor... Read More

    What is Debt Consolidation?

    Here is a useful guide to what is Debt consolidation.... Read More

    Finding the Consolidation Loans that You Need

    Consolidation loans can be very useful in a number of... Read More

    The Burden of Debt

    Over recent years personal debt in the UK has exploded.... Read More

    Escape the Credit Card Death Spiral

    You're burdened with crushing debt and at the end of... Read More

    Finding a Reputable Debt Consolidation Company

    If you are looking for a company that will help... Read More

    Before Considering Debt Consolidation

    If you believe in the good in people then you... Read More

    Considering Debt Settlement? What You Should Know

    Your credit card bills are stacking up and for whatever... Read More

    Get Out of Debt

    It is said that a pet tiger cub can become... Read More

    Debt Consolidation Solutions

    Millions of Americans are finding it hard to pay their... Read More

    16.4% APR $5,000 Auto Loan...HELP!

    Are you the victim of a high interest rate auto... Read More

    Debt Consolidation: A Way Out?

    When you are living paycheck to paycheck and it seems... Read More

    Planning To Become Debt Free With A Consolidation Loan

    If you have multiple debts, and are struggling to meet... Read More

    Exploring Your Options for a Consolidation Loan UK

    Whether you're wanting to consolidate your debt to avoid bankruptcy,... Read More

    Perks and Pitfalls of Debt Consolidation

    Whether you want to pursue debt consolidation in order to... Read More

    What You Need to Know About Debt Consolidation

    Debt consolidation is often a last resort for people who... Read More

    Debt Consolidation Mortgage: Home Solutions for Integrating Arrears

    Credit card debts, auto loans debts, secured loans debts, unsecured... Read More