If you didn’t already know it, we now live in a consumer society driven by easy short-term unsecured debt. Most of this is denoted in the form of credit card debt, with nearly all of us having to-hand more than one credit card on which to call when the kids want those new sports shoes.
The fact is though, credit card debt is expensive to fund – interest rates are high, and there is nearly always some form of credit-usage fee in our account statement. To counter this, below we look at 5 reasons why you might want to exercise the option to consolidate your credit card debt:
1) Because interest rates are high
The principal reason why most people consider switching credit cards and consolidating all of their outstanding credit card debt into one card is because the interest rates on their existing credit card are just too high.
Here, as you may be aware (from all the advertising that is thrown at us), not all credit card issuers offer the same interest rate (although they are closely related in a broad spectrum). Moreover, in this highly competitive market, some credit card issuers now offer significantly lower rates of interest than some of the other more “traditional” credit card issuers.
So, if you think that it is going to be financially beneficial to you to consolidate all of your existing outstanding credit card debt into one credit card debt that is offering a lower interest rate, which will equate in significant savings, this may well be a very sensible option to take….. read more »