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There are many individuals who need credit card debt consolidation today and you will know why once you consider some simple facts. After considering the facts then take a look at your own credit card statements.
You may want to consider ways to eliminate credit card debt. The consumer credit card balance was a median of over three thousand dollars in the year 2018 according to a study by NellieMae which is a subsidiary of the SallieMae corporation. However, this is just the start of the statistics.
Now the scary numbers come into play. The annual credit card interest rate is nine percent, although your cards may have a higher or lower interest. Therefore, this means that if you continue to only make the minimum monthly payments on a three thousand dollar credit card debt, it will take you about fifty year to get credit card debt relief.
In this time you will have added up fifteen hundred dollars worth in interest payments. This means, that you would be paying fifty percent more than if you had just paid cash for your product. Once you look at your statement you may be ready to look for a credit card debt settlement. However, before you do consider a few other credit card debt facts.
A survey showed that twenty percent of individuals who have credit card debt owe between six thousand and fifteen thousand. Six percent of individuals had a debt of over fifteen thousand. The reason for this high of credit card debt? Most individuals tend to spend ten percent more each month than they actually make.
That means, based on the average income in the United States, individuals are purchasing over four hundred dollars worth of things that their paycheck won’t cover. These facts show why people can easily become trapped in the credit card debt. Now you are ready to learn about credit card debt reduction and the options available to you.
Ways to Reduce Debt
Two Options for Your Credit Card Debt Relief
Before you decide which credit card debt consolidation option to go with you should consider the pros and cons of each. There are two primary ways that you can eliminate credit card debt. This is through debt consolidation loans and debt management. There is a lot of research work that goes into deciding which of these methods is best for your financial needs, but consider some of the pros and cons when making your decision.