Credit Consolidation Facts & Tips
One of our goals is to educate our visitors on credit debt and other relevant financial topics. Get helpful tips and facts about credit debt and how to beat it here.
Interesting Facts about Credit Debt
Consolidate My Credit stands by the notion that the more you know about credit debt as a consumer, the more capable you will be to conquer it. To further inform you about credit consolidation, here are some interesting facts about credit debt:
- Consumer credit debt is climbing in the U.S.
- The first thing you need to do to erase debt is create a budget that helps you cut expenses
- You are probably over your head in credit debt if your non-housing debt exceeds 20% of your net income or if your mortgage or rent payments consume more than 30% of your net income
- To tackle debt, you have to focus on high-interest accounts first. You might also consider consolidating high-interest accounts to lower interest rates.
- Don't borrow for short-term purchases that will not endure. You want whatever you got into credit debt for to still be around when you finish paying off the loan (e.g. an education, a home, etc.).
Consolidate My Credit Checklist
So you want to get out of credit debt, but where do you start? Consolidate My Credit has put together the following checklist for people who are just getting started on tackling their debt.
- Make or revise your household's budget
- Take 30 minutes in the next week to sit down and think of creative ways you can trim expenses and save more money
- Create a list of your high-interest credit debts. Next, either look into a Consolidate My Credit consolidation program or find other ways to move the high-interest credit debt to accounts with more reasonable rates. You might consider balance transfers, a home equity loan, etc.
- Itemize the purchases you make each month that could be eliminated. For example, unread magazine subscriptions, seldom used gym memberships, and other similar purchases can be eradicated. Instead, devote the money toward paying down a debt.
Follow the steps to consolidate debt that we have given to help your financial future.
