Banish The Ghosts Of Christmas Past With A Debt Consolidation Loan
Released on = January 5, 2006, 7:29 am
Press Release Author = Interfinancial Limited
Industry = Accounting
Press Release Summary = As the realisation of the cost of Christmas dawns across the Nation with every opened Credit Card statement, many people will soon discover that they may not be able to afford the levels of debt they have aquired. Is a debt consolidation loan the way to resolve the problem?
Press Release Body = FOR IMMEDIATE RELEASE 08/01/2006
Banish The Ghosts Of Christmas Past With A Debt Consolidation Loan
As the realization of the true cost of Christmas dawns across the Nation with every opened Credit Card statement, many people will soon discover that they may not be able to afford the levels of debt they have acquired. Is a debt consolidation loan the way to resolve the problem?
Kent - 05/01/2006
It\'s just about this time of year when you find out just how expensive Christmas actually was, as all the credit card and store card bills start dropping through the letter box. However, once you have got over the initial shock, do you wonder about the real cost? Ask yourself if you intend to pay off all the debt in one hit, so you do not accrue any interest charges. If you are able to do that, that\'s great - you do not really need to be reading this. If you are only planning to pay off the minimum payment, and all that has happened is your balance has gone up, then start to think about what the real cost actually is. Credit card and store card interest rates are not cheap.
If you only make the minimum payment each month, by the time next Christmas comes around, you find that the cost of this Christmas is still on your credit card as you have only been paying off what amounts to the interest charges, and not actually reducing the balance at all. It has been mooted that if you only pay the minimum amount each month, you will never actually clear the credit card debt. A sobering thought!
If you do have a few credit cards, and let\'s face it, most of us do, stop and add up all the individual balances. You may well be horrified at the answer. A couple of grand here and there on a few cards adds up.
So what can you do about it? Well if you haven\'t enough money in the bank to pay it off, a sensible course of action is to realign your debts. It doesn\'t take a genius to work out how you can save money this way.
If you have £10,000 worth of credit card debt, you could be paying upwards of 12% for the privilege. By realigning the debt, (ie taking out a debt consolidation loan and paying off the debts), you could pay anything from 6%, and also determine the time that it takes you to clear the debt.
Now the drop from 12% to 6% may appear to some people a difference of only 6%. It actually means that the yearly interest that you are charged is halved. You now have an increase in disposable income!
To find out more about how realigning your debts using a consolidation loan could save you money, visit http://www.essentiallyhomeloans.co.uk
It could be better than a New Year pay rise!
Stuart Pike spike@inter-financial.com www.essentiallyhomeloans.co.uk
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