Many customers only think about consolidating debts when they are in financial trouble.
When their credit card and loan payments are too high to repay or they need to have lower interest rates, they consider consolidating their debts.
However, consolidating is not just for people who are in financial trouble.
In fact, credit card consolidation is often a perfect solution for anyone in good financial standing with a few debts.
Consider: • Consolidating debts can help you take advantage of lower rates or a better credit rating.
By selecting a company listed with the Association of Independent Consumer Credit Counseling Agencies or the National Foundation of Credit Counseling, you can consolidate your current debts into a lower interest rate loan and enjoy better terms.
By consolidating debts, you can reap the rewards of being financially responsible.
• Consolidating debts can help repair your debt to income ratio if you know you have a large purchase coming up.
If you know you want to buy a home in a few years, for example, consolidating debt can help you pay off your debts so that you are more attractive to lenders.
Lenders will see that you take debt seriously and so will be more willing to offer you a great rate on a big loan.
• Consolidating can help you avoid financial problems in the future.
If you have just a few debts that you can still afford, consolidating debt can make your debts smaller and more affordable - and so can help you avoid financial problems down the road.
• Consolidating debt can put more money in your pocket and can save you time.
Even if you are having no trouble paying off your debt payments now, having more money in your pocket can make financial sense - especially if you invest your savings for retirement or for an emergency.
Plus, one bill a month instead of fourteen will make your life much easier.