What is the Problem?
Australia is a huge market for credit card companies, and everyone seems to be making a celebration of it; not least of all, the users themselves. In total, Australians owe as much as $ 36.5 billion to credit card lenders. At first glance that may not seem like a huge figure, but when you calculate that the average credit card holder in Australia individually owes about $ 4,700 to the card companies, the truth hits hard. What’s worse is that the average interest on that is more than $ 800!
It might lighten your load to know that American credit card debt is a humungous $ 852 billion! But then again, that doesn’t help you in any way. If you’re one of the many thousands who may be struggling with credit card debt during these summer holidays, maybe it’s time for a reality check to see where you stand and if there’s anything you can do to alleviate the situation. No, shopping is not the answer, but you may be close.
What is the solution?
This year, why not shop around for a Credit Card Consolidation service that can help you in many ways? There’s nothing worse for your financial health than piled-up card debt that you can barely keep track of, let alone make regular payments on. You already know that making minimum payments every month isn’t the way to go.
If you’re serious about doing something, then think Debt Consolidation Australia has many opportunities to help you spending money, but when it comes to saving it, there’s only you. However, that scenario is quickly changing; even now there are several top companies that can help you consolidate your credit card debt and manage your repayments. Their services help take you to a level where you can breathe again, and start planning for the future instead of paying for the past.
Why Debt Consolidation?
Combining your existing individual loans is a great way to save money and get back on your financial feet. Why – because owing the same amount of money to one lender is often the best way to keep your interest payments low; do the same with multiple lenders and what you have is a haphazard pattern of interest rates that you won’t realize are sucking the lifeblood from your core earnings.
Why pay more when you can consolidate?
Another benefit of consolidation is to gain a better understanding of your debt situation and make better plans for repayment. Many people make the mistake of thinking that they’re ‘on top’ of their spending and debt but are often taken aback each time a new bill presents itself. You’d have to be a certified accountant to figure it all out so why go through that when you can see all of your debt on one statement? It helps you streamline your repayment strategy.
The biggest advantage of debt consolidation is a possible reduction in your total debt – not just from well-negotiated interest rates. Lenders are often willing to negotiate the total amount you will owe them, especially when they are trying to woo your debt away from their competitors. Debts are assets to banks, so it’s only natural that they’ll do what it takes to get your business.
With so many benefits, a more fitting question at this point would be: “Why NOT debt consolidation?”