Debt consolidation loan for credit card debt
Millions of Americans have already been hit with increased credit card interest rates, but if your rates haven’t gone up yet, keep your eyes open; there’s probably a rate increase notice in the mail right now. It’s time to look into a debt consolidation loan.
Robert Manning, of the Washington Post, described credit cards as “yuppie food stamps;” a way of making ends meet. Right now, there are more than 700 million general purpose credit cards in use, and another 500 million retail store credit cards. Moreover, the average American household carries more than $10,000 in credit card debt. If a household happens to have credit cards at 18%, and makes minimum payments, it will take roughly 48 years to pay off the debts. Makes a debt consolidation loan sound sensible, right?
The average credit card rate is almost 14% this week, compared to six months ago when it was only 12%. However, for anyone who makes a late credit card payment, the rate can go as high as 30% or more. And, when interest rates get that high, a debt consolidation loan is just about the only way to get out from under credit card debt.
In the most recent Federal Reserve survey,
• 54% of senior bank loan officers said they had or would soon increase interest rates on credit cards held by consumers with good credit;
• 74% said they had, or will, increase rates for consumers with bad credit;
• 50% have or will but credit card limits; and,
• 40% said they have or will increase fees.
In a flash of creativity, they’ve even introduced a new fee—an inactivity fee for cardholders who pay off their accounts every month, or don’t use the card at all.
With a debt consolidation loan consumers have:
• Lower interest rates—as low as 6.99% with good credit
• Fixed interest rates
• Consistent monthly payments
• Faster payoff with savings of $1,000s in interest charges.
If you’re thinking about a debt consolidation loan, consider working with America One Unsecured, a loan consulting firm. They can help you learn more about your debt management options, and help you get the best rate a debt consolidation loan.