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By: bernzj
on 30th Apr,2014
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Good Things about Debt Consolidation

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Credit card debt is a huge problem for a lot of people. Some people have gotten to the point that they do not even know exactly how much they owe because they are afraid to even open their monthly credit card bill. They simply mail in the minimum payment and stress about their personal finances. If you are currently in this situation, you might be considering consolidating your credit card bills into one large debt. There are some down sides to credit card consolidation, but there are also some really positive points.

When you have consolidated your credit card debt you will no longer have to worry about which card has been paid and how much money you owe on a particular card. Instead of three or four monthly payments, you will only have to worry about one payment. The people who oversaw the consolidation will take care of who gets paid and when.

Many people find that they have an easier time putting together a monthly budget when they only have to worry about one bill instead of several. The fact that the monthly payment is usually smaller than the multiple payments they were making before also helps put less of a strain on the family's finances. Not only does this allow the person to start setting aside some money for their future retirement, it also allows the person to add to their monthly payment which will get their debt paid off much more quickly.

quick cash

When you consolidate your debts, you are actually arranging for something that is called a secure loan. When you take out a secure loan you are agreeing that if you default on the pay day loan, the company that is holding the loan has the right to take your assets. The asset that is most commonly used to secure the loan is a person's house. For many people the idea that they would have to give up their home is the motivation that they need to get their newly consolidated debt paid off as quickly as they possibly can. No one likes to give up their home.

Few people know it before hand, but having your loans consolidated actually makes you eligible for some tax breaks. The government provides tax breaks on the interest you are paying on your quickloans, something they do not do for credit card interest. So, even though you are paying the same bills, now you are getting rewarded by the IRS.


One of the biggest perks to getting your credit cards consolidated is that you will be paying a lower interest rate. The interest on the debt consolidation loan will not be nearly as high as what the credit card companies were charging you. An added perk is that when you consolidate your debts, some credit card companies will offer debt settlement which can reduce what you owe them by as much as 60%.

There are many pros and cons to getting your credit card debt consolidated. This is not something you should do impulsively. You need to consider all of your options before making a final decision.

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Last edited: 30th Apr,2014 by admin

About Author

Author and entrepreneur Bernard Jayma Pragides is the owner of, a personal finance blog. A successful business person and investor himself, he decided to construct on the basis of helping other people learn to invest and to teach them values of financial independence.

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