As per a recent report a variety of statistical data has come to the forefront. A study reveals that people are opening fewer accounts. 26% lesser credit cards are being pursued by consumers, than they pursued three years before. The statistics reveal that most people are not being able to pay off their credit card debts because of increasing unemployment. So for those who can not pay off their current debt or credit consolidation
it is impossible to take on new credit cards. The average number of credit cards was the most in New York as per the survey. Gothamites had 3.77 open accounts and Pittsburg had 3.6 accounts.
If you too are buried under credit card bills and are facing a lot of difficulty when it comes to managing your multiple credit card bills, then you can opt to consolidate debt. Consolidating your credit card debt involves combining all your multiple bills into one amount. You no longer have to pay multiple creditors but only towards one debt. The basic idea is to pay off debt in a convenient way. After you decide on consolidation you must now find out the best way in which you can consolidate your credit card debt.
A few ways in which you can get rid of credit card debt are as follows:
1. Taking help from a consolidation company: It is better to take the help of a consolidating company rather than consolidate your multiple credit card bills yourself. The consolidation company negotiates lower interest rates with your creditors. Your late fees may also get waived off. A fixed monthly amount is decided on and you have to pay this amount every month to the consolidation company. This amount in then further distributed among your creditors. Thus, you do not need to deal with multiple creditors One of the advantages of taking help from a debt consolidation company is that they have a greater negotiating power over your creditors. This increases your chances of a better consolidation deal.
2. Taking out a consolidation loan: You can take out a consolidation loan to pay off all your other loans. So you pay only towards the loan every month instead of paying all your multiple creditors. Another advantage is that the loan is offered at a much lower rate of interest than the interest rates charged by your credit card debts.
3. Do it yourself consolidation: You can also consolidate debt yourself if you do not want to waste money on paying the consolidation company. When doing this you must first figure out how much debt you exactly have. To consolidate you can take out a home equity loan or you can also borrow from your retirement savings.