Why do you need it?
Like other states in the world, the United States is also facing a stressful problem of economical downfall in history. The Obama administration is striving hard to get the troubled financial situation back in its shape. Credit card bills are one of the bugs in the solutions of the government. In return for this, better credit card consolidation policies and other practices that are implemented by the bank industry will be raised in response to such controversial legislation.
The real efforts of the lawmakers who have worked out on taking the credit card debts burden off the consumers’ shoulders will continue to remain unfruitful if American cardholders will not become aware of the actual benefits of the credit card policies. There are three basic reasons that describe why credit cardholders should go for credit card consolidation.
1: This Will Protect You From Higher Yearly Fees
- The banking industry charges high annual rates on consumers.
- This is a big complaint recorded against the banking industry.
- This problem became more intense when cardholders were having more than one credit card and they were required to pay off multiple high annual fees on multiple cards.
- Regardless of the advantage that owning multiple credit cards increases your purchasing power. This can turn into a big disadvantage on the time when you have to make multiple high annual payments.
- If you want to enjoy the benefits only and want to get rid of the disadvantages of multiple credit cards go for it.
- Before applying for credit card consolidation for this reason make sure that the bank will not charge you higher interest rates and any other hidden fees or charges.
- If you don’t carry out enough homework then you’ll have to pay off high annual fees even after having credit card consolidation.
2: Brings Benefits Given by Issuers
- There are some credit cards issuers that are happily agreed to pay cardholders for them in order to get loans consolidated. But banks do this by using a strategy to attract consumers.
- There are some issuers that offer you to shift your better credit card debts into their accounts and in turn, they will lower your debts from the outstanding credit cards balances that you hold.
- Make sure there are no hidden charges or fees.
- Carefully looks for any other conditions that your bank may impose on you.
- Thoroughly study all the terms, conditions, and policies before signing your loan application.
3: Bad Credit Score Requires Credit Card Consolidation at Any Cost
- If you have a bad credit score then no reason left to make your loan application get rejected.
- Bad credit scores leave a bad impression on your account and it stays for a long period of time.
- The only best available option to control the getting worst financial situation is credit card consolidation.
Credit card consolidation is a better and wise option to save you from being drowned in the debt sea.
Take a determined action against your bad credit score by applying for credit card consolidation
Credit Problems Moves On
As a retiree, one can most probably be on a fixed income. They might have a lot of saving in their accounts, but as they have a mortgage and are still carrying $8,000 on credit cards. So this departs with one current excess cash flow to pay for any credit acquisition. Instead of that if anyone has doubt that they have too much debt?
The use of credit (credit cards), means one can use the money which can be received tomorrow to pay off the purchase for today. It would be good if one excess income is coming in tomorrow so as to pay off their today’s purchase, but just on the basis of fixed income one might not have excess earnings, if one doesn’t have income or enough saved to purchase it today, then don’t purchase, definitely, one can cut their monthly expenses just to pay their credits.
Less credit, great problems
Banks look at one’s cash flow and know that one would have trouble regarding paying off their credit, and that’s why they have been told that they don’t qualify for an additional credit the bank considers the co-signed student loans of $8,000 your debt. It’s your debt. As a co-signer, you would be responsible to pay off your children who defaulted on the loans.
If one wants to move the place for not getting credit then probably they would be facing difficulty in qualifying mortgage for a new home even if they can sell out their current home and pay off the debts you have on the mortgage. The lenders look at the mortgage loans more clearly before approving the new one.
Instead of that if one wants to leave the place to get credit in a new place, then they might have to consider for rent house rather than purchasing a new one. Or purchasing a new home they have to sell out the current home to pay in cash if they don’t do so, they have to face many problems regarding their monthly expenses.
If one wants some additional monthly income, it would be better to stay where you are and once you turn 62, contact a housing counselor approved by the Department of Housing and Urban Development to help you and make you look onto the reverse mortgage of your home, which might be a good financial move for you.
It would be better to start saving for unexpected expenses above and beyond your current monthly obligations. Unplanned expenses can cause chaos in your finances when you have a fixed income. So, fixed income could be a problem for you if you decided to move from one place to another.
Never try to overcome your extra purchases on a fixed income because it may cause problems for you in the future