Random Thoughts

In these tough economic times, people are using their credit cards more often. There may be a sudden emergency such as a medical problem or car engine trouble, and they may wonder how they’re going to pay for these unexpected expenses. Borrowing money is an option, but these days, many people are struggling financially. Although your loved ones would like to help, they may not be able to lend you the money. Another option is to secure a personal loan, but if your credit is bad, you may not qualify for the loan.

No matter how you get the money, one way or another, you are increasing your debt load. Whether you use your credit cards, get a personal loan or borrow from friends or family, you will have to eventually pay it back. The problem with using the credit card is that you will probably have a high interest rate. If you’re unable to pay the card off, this will increase your debt even more. If you miss a payment, you’ll be hit with late fees and a possible increase in your interest rate. When you only make minimum credit card payments, it can be years before the debt is completely paid off. A personal, unsecured loan will probably come with a high interest rate as well.

One solution to getting out from under this heavy load of debt and stack of monthly bills you’ve accumulated is to do a debt consolidation. This can be really helpful in lowering your overall interest rate, reducing the time it takes to pay off the debt and even lowering the amount you owe. Debt consolidation services will take all your unsecured debt such as credit cards and personal loans and combine them into one easy monthly payment. You pay the service each month, and they will pay your creditors for you.